2011 (7) TMI 322

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....unal was right in holding that there is no goodwill attributable, as the manufacture of cement in the newly acquired company would involve problems?   3. Whether in the facts and circumstances of the case, the Tribunal had considered all the parameters that are necessary for the valuation of the goodwill of the purchased company?"   2. The assessment year under consideration is 1991-1992. During the relevant previous year relating to the assessment year 1991-1992, the assessee herein acquired the cement plant from M/s.Coromandel Fertilizers Limited, for a consideration of Rs.105.30 crores. The Assessing Officer viewed that 10% of the said purchase price represented goodwill and on that basis he did not allow the depreciation on ....

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....it from M/s.Coromandel Fertilizers Limited did not automatically generate any income to the assessee. It had to expend further to acquire the mining rights for lime from the Government apart from restructuring the manufacturing plants for manufacturing operations.   5. Going by the financial loss suffered by the company, the Tribunal held that there was no goodwill left for any valuation at the hands of the assessee. The Tribunal further pointed out that there was shortage of electricity which seriously affected the production of the transferor and right from the start it was a loss making company. Thus, going through the materials the Tribunal came to the conclusion that the question of valuing goodwill at 10% of the total considerat....