TaxTMI 
TaxTMI 
2013 (5) TMI 224
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....ging the initiation of reassessment was not pressed by the learned AR. The same is, therefore, dismissed. 4. The first ground is against the confirmation of disallowance of Rs.23,91,696 being depreciation on goodwill. Briefly stated the facts of this ground are that the assessee acquired the business of M/s.Dhariwal Nonwovens for a lumpsum consideration of Rs.250 lakh with effect from 01.04.2003. The net asset of M/s.Dhariwal Nonwovens on the date of transfer were to the tune of Rs.1,30,41,518. The difference between the sale consideration and net asset amounting to Rs.1,19,58,402 was paid towards goodwill which was capitalized in the books of account on which depreciation was claimed at Rs.29,89,620. The Assessing Officer disallowed the claim of depreciation on goodwill. The learned CIT(A) upheld the assessment order on this point. 5. After considering the rival submissions and perusing the relevant material on record, we find that this issue is no more res integra in view of the judgment of the Hon'ble Supreme Court in the case of CIT v. Smifs Securities Ltd. [(2012) 348 ITR 302 (SC)]. In that case also excess consideration paid by that assessee over the value of net as....
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.... stock of raw material and packing material. The facts apropos this ground are that during the course of assessment proceedings the Assessing Officer observed that the assessee was following Rs.Exclusive method' of accounting for valuing the inventory. Considering these facts, the Assessing Officer made addition of Rs.1,80,137, which came to be upheld in first appeal. 9. We have heard the rival submissions and perused the relevant material on record. Section 145A was inserted by the Finance (No.2) Act, 1998 with effect from 1.4.1999. It provides that the valuation of purchase and sale of goods and inventory for the purposes of determining the income chargeable under the head "Profits and gains of business or profession" shall be in accordance with the method of accounting regularly employed by the assessee and further adjusted to include the amount of any tax, duty, cess etc. paid or incurred by the assessee to bring the goods to the place of its location as on the date of valuation. According to the prescription of this section, which is applicable to the year under consideration, the amount of tax, duty, cess etc. is liable to be included in the value of purchases, sales, ....
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....his appeal is against the confirmation of disallowance of Rs.16,81,661 being depreciation on goodwill. As the facts and circumstances of this ground are admittedly similar to the similar ground disposed of by us for the A.Y. 2004-05, following the view taken hereinabove, we allow this ground of appeal. 17. Second ground of the assessee's appeal is against the confirmation of disallowance u/s 14A amounting to Rs.11,69,778. Similar issue has been considered and decided by us above in the appeal for the assessment year 2004-2005. Following the same, we remit the mater to the file of the AO for working out the disallowance under this provision on some Rs.reasonable basis' as has been held by the Hon'ble High Court in Godrej & Boyce Ltd. Mfg. Co. (supra). 18. Third ground raised by the assessee is against the confirmation of disallowance of Rs.1,36,215 u/s 145A. Here again, both the sides are in agreement that the facts and circumstances of the instant ground are mutatis mutandis similar to those of assessment year 2004-2005. Following the view taken hereinabove, we set aside the impugned order and restore the matter to the file of A.O. for deciding it afresh in accord....
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.... 26. First ground raised in assessee's appeal is against the confirmation of disallowance of Rs.19,89,434 being depreciation on goodwill. 27. Both the sides are unanimous that the facts and circumstances of the ground case are mutatis mutandis similar to those of similar issue considered and decided by us for the assessment year 2004- 2005 in the case of M/s.Bhilad Textile Industries Pvt.Ltd. Respectfully following the view taken hereinabove, we direct to consider the amount of goodwill as an item of asset eligible for depreciation. This ground is allowed. 28. Second ground of the assessee's appeal and first ground of the Revenue's appeal are in respect of section 14A. This issue has been considered and decided by us above in the case of M/s.Bhilad Textile Industries Pvt.Ltd. Both the sides are in agreement that the facts and circumstances of the instant year are mutatis mutandis similar to those of assessment year 2004-2005 in the case of M/s.Bhilad Textile Industries Pvt.Ltd. Following the view taken hereinabove, we remit the mater to the file of the AO for working out the disallowance under this provision on some Rs.reasonable basis' as has been held by the....