https://www.taxtmi.com/caselaws?id=754807 ITAT Bangalore allowed depreciation on goodwill claimed by assessee who acquired business through transfer agreement. Revenue contended no tangible/intangible assets existed, making depreciation inadmissible. Tribunal found AO's presumption about identical shareholding patterns between assessee and seller company factually incorrect. Relying on SC precedent in CIT v. SIMS Securities, excess payment over net asset value constitutes goodwill as intangible asset eligible for depreciation. Since recipient company offered excess amount as short-term capital gain accepted by Revenue, depreciation claim was valid. AO directed to allow depreciation on goodwill. en-us Mon, 24 Jun 2024 00:00:00 +0530 Fri, 20 Feb 2026 17:21:54 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=754807 ITAT Bangalore allowed depreciation on goodwill claimed by assessee who acquired business through transfer agreement. Revenue contended no tangible/intangible assets existed, making depreciation inadmissible. Tribunal found AO's presumption about identical shareholding patterns between assessee and seller company factually incorrect. Relying on SC precedent in CIT v. SIMS Securities, excess payment over net asset value constitutes goodwill as intangible asset eligible for depreciation. Since recipient company offered excess amount as short-term capital gain accepted by Revenue, depreciation claim was valid. AO directed to allow depreciation on goodwill. Case-Laws Income Tax Mon, 24 Jun 2024 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=754807