https://www.taxtmi.com/caselaws?id=774372 The ITAT Ahmedabad allowed depreciation on goodwill acquired during amalgamation. The AO denied depreciation claiming intangible assets held at NIL cost by the amalgamating company must remain at NIL cost for the amalgamated company. The ITAT held that the AO ignored the approved amalgamation scheme where goodwill was recorded through proper valuation. Following Smifs Securities Ltd. precedent, when consideration paid exceeds net assets acquired, the differential amount constitutes goodwill eligible for depreciation. The CIT(A)'s decision allowing depreciation was upheld. en-us Fri, 04 Jul 2025 00:00:00 +0530 Tue, 08 Jul 2025 08:36:16 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=774372 The ITAT Ahmedabad allowed depreciation on goodwill acquired during amalgamation. The AO denied depreciation claiming intangible assets held at NIL cost by the amalgamating company must remain at NIL cost for the amalgamated company. The ITAT held that the AO ignored the approved amalgamation scheme where goodwill was recorded through proper valuation. Following Smifs Securities Ltd. precedent, when consideration paid exceeds net assets acquired, the differential amount constitutes goodwill eligible for depreciation. The CIT(A)'s decision allowing depreciation was upheld. Case-Laws Income Tax Fri, 04 Jul 2025 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=774372