https://www.taxtmi.com/caselaws?id=754414 ITAT Mumbai quashed Pr.CIT's revision order u/s 263 regarding depreciation on goodwill and inventory amortization disallowance. The tribunal held that depreciation on goodwill arising from amalgamation was permissible per SC precedent in Smifs Securities Ltd, making the assessment order neither erroneous nor prejudicial to revenue. Regarding inventory amortization, despite assessee's admission of inadvertent error requesting higher disallowance, the tribunal found no revenue prejudice as assessee had substantial business losses that would have lapsed. The twin conditions of Section 263 - order being both erroneous and prejudicial to revenue - were not satisfied. Appeal decided in favor of assessee. en-us Wed, 24 Apr 2024 00:00:00 +0530 Sat, 22 Jun 2024 13:16:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=754414 ITAT Mumbai quashed Pr.CIT's revision order u/s 263 regarding depreciation on goodwill and inventory amortization disallowance. The tribunal held that depreciation on goodwill arising from amalgamation was permissible per SC precedent in Smifs Securities Ltd, making the assessment order neither erroneous nor prejudicial to revenue. Regarding inventory amortization, despite assessee's admission of inadvertent error requesting higher disallowance, the tribunal found no revenue prejudice as assessee had substantial business losses that would have lapsed. The twin conditions of Section 263 - order being both erroneous and prejudicial to revenue - were not satisfied. Appeal decided in favor of assessee. Case-Laws Income Tax Wed, 24 Apr 2024 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=754414