https://www.taxtmi.com/caselaws?id=462001 The ITAT Hyderabad ruled in favor of the assessee regarding depreciation claims on goodwill and tangible assets acquired through a Business Transfer Agreement. The tribunal rejected the revenue's contention that the transaction was a colourable device, noting that capital gains were accepted in the seller's hands without adjustment. The tribunal held that once the department accepted the seller's capital gains, the transaction's legitimacy cannot be questioned in the purchaser's hands. Depreciation on goodwill was allowed, and the matter of tangible asset depreciation was remanded to the AO for verification and proportionate allowance under section 32(1)'s 6th proviso. en-us Fri, 09 Feb 2024 00:00:00 +0530 Wed, 14 May 2025 16:53:37 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=462001 The ITAT Hyderabad ruled in favor of the assessee regarding depreciation claims on goodwill and tangible assets acquired through a Business Transfer Agreement. The tribunal rejected the revenue's contention that the transaction was a colourable device, noting that capital gains were accepted in the seller's hands without adjustment. The tribunal held that once the department accepted the seller's capital gains, the transaction's legitimacy cannot be questioned in the purchaser's hands. Depreciation on goodwill was allowed, and the matter of tangible asset depreciation was remanded to the AO for verification and proportionate allowance under section 32(1)'s 6th proviso. Case-Laws Income Tax Fri, 09 Feb 2024 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=462001