2012 (10) TMI 147

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....ciation is not allowable under section 32(1)(ii) of the Act on various "intangible assets" classified as "goodwill" on consolidated basis?" Questions (b) to (f) in paragraph 35 of the appeal are only facets of the above question of law and are covered by the same. Mr.Shah, the learned counsel appearing on behalf of the appellant states that the appellant, without prejudice to its rights and contentions, does not press the issue raised in question (g) in view of the fact that the tax incidence in respect thereof is minimal. For this reason alone, the issue sought to be raised in paragraph 35(g) is not pressed. 3. On 1.10.2001, the assessee purchased the catering business on slump sale basis for Rs.206.40 crores from Indian Hotels Co....

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....f the matter. From the assessment order it can be clearly seen that the assessing officer had noticed from the recitals in the business transfer agreement, that intellectual properties which are listed out in Article 1, sub clause b, have been transferred along with other movable and immovable assets. Even in article 2, Sub clauses b, and e, mention a list of intangible assets, which have been aggregated and loosely termed as "goodwill" by the assessee in its books of account. Thus the fact that the slump sale consists of many intangible assets along with goodwill is not in dispute. It is true that no depreciation is allowable on goodwill. But at the same time, the legislature provides that depreciation should be allowed on all other intang....

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....-2004. 6. The Supreme Court as recently as 22.8.2012 in CIT vs. Smifs Securities Limited, Civil Appeal No.5961 of 2012, held that goodwill would fall under the expression "any other business or commercial rights of similar nature" in section 32(1) Explanation 3 (b). It is therefore, contended on behalf of the appellant that it is entitled to depreciation in respect of goodwill. 7. A peculiar situation has therefore, arisen. The assessee would now in fact be benefited by the rejection of the Tribunal of the valuation reports and the Tribunal proceeding on the basis that the entire amount of Rs.71.00 crores is attributable to goodwill. On the other hand, as far as the proceedings in respect of the AY 2003-2004 are concerned, the matter ....