https://www.taxtmi.com/caselaws?id=776575 The ITAT Ahmedabad upheld the Principal CIT's revision under section 263, confirming that the AO failed to properly examine the claim of depreciation on goodwill in AY 2018-19. Since the depreciation claim was disallowed in the immediately preceding year on identical facts, and no new justification or change in circumstances was shown, the principle of consistency did not apply. The allowance of depreciation in subsequent years could not validate the claim for the current year. The goodwill was incorrectly classified under the block of "Building" at 5%, whereas it is an intangible asset. The AO's failure to disallow the claim again amounted to an erroneous order. The revision was held justified, and the appeal was dismissed against the assessee. en-us Mon, 11 Aug 2025 00:00:00 +0530 Wed, 13 Aug 2025 07:27:30 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=776575 The ITAT Ahmedabad upheld the Principal CIT's revision under section 263, confirming that the AO failed to properly examine the claim of depreciation on goodwill in AY 2018-19. Since the depreciation claim was disallowed in the immediately preceding year on identical facts, and no new justification or change in circumstances was shown, the principle of consistency did not apply. The allowance of depreciation in subsequent years could not validate the claim for the current year. The goodwill was incorrectly classified under the block of "Building" at 5%, whereas it is an intangible asset. The AO's failure to disallow the claim again amounted to an erroneous order. The revision was held justified, and the appeal was dismissed against the assessee. Case-Laws Income Tax Mon, 11 Aug 2025 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=776575