https://www.taxtmi.com/caselaws?id=770534 ITAT Hyderabad held that depreciation on goodwill arising from amalgamation is allowable, as the goodwill acquired by the amalgamated company represents a capital asset eligible for depreciation under section 32. The tribunal rejected the AO's disallowance, emphasizing that the term "user" in section 32 should be broadly interpreted for intangible assets like goodwill. Regarding interest on loan borrowed to acquire shares controlling the business, the ITAT ruled such interest deductible under section 36(1)(iii), considering the acquisition as business expansion. The AO's disallowance under section 37(1) was set aside, and the CIT(A)'s order allowing the interest deduction was upheld. The Revenue's appeal was dismissed. en-us Thu, 06 Feb 2025 00:00:00 +0530 Thu, 31 Jul 2025 11:46:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=770534 ITAT Hyderabad held that depreciation on goodwill arising from amalgamation is allowable, as the goodwill acquired by the amalgamated company represents a capital asset eligible for depreciation under section 32. The tribunal rejected the AO's disallowance, emphasizing that the term "user" in section 32 should be broadly interpreted for intangible assets like goodwill. Regarding interest on loan borrowed to acquire shares controlling the business, the ITAT ruled such interest deductible under section 36(1)(iii), considering the acquisition as business expansion. The AO's disallowance under section 37(1) was set aside, and the CIT(A)'s order allowing the interest deduction was upheld. The Revenue's appeal was dismissed. Case-Laws Income Tax Thu, 06 Feb 2025 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=770534