2014 (6) TMI 661

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.... 2. The common issue involved in the assessee's appeal pertains to the allowability of depreciation on the value of goodwill amounting to Rs.82.30 lakhs. The relevant facts are that the assessee vide transfer agreement dated 12th April, 2002 had purchased assets i.e., business from its associate concern. After the purchase/transfer of the business asset, the assessee had claimed the depreciation @ 25% of 11.13 crores, being the value for asset management rights/intangible assets which included the claim of depreciation on the value of 'goodwill' amounting to Rs.82.30 crores on the basis of the valuation report from M/s. SSPA & Company obtained by the assessee. In the assessment framed, the AO while not accepting the valuation report filed ....

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....' is an asset under the explanation 3(b) to section 32(1) and eligible for the depreciation. In view of this settled legal position, we are of the considered view that the Ld.CIT(A) is not justified in denying the benefit of depreciation claimed by the assessee on the 'goodwill'. Accordingly, we direct the AO to allow claim of depreciation on the goodwill in all the four assessment years in which the said issue is involved. 4. Grounds no. 4 & 5 in the assessee's appeal for the assessment year 2004-05 and 2005-06 relate to the disallowance u/s 14A read with Rule 8D which are not pressed by the assessee and ground no. 6 in the said appeals are consequential in nature. Thus grounds no. 4, 5 and 6 in the assessee's appeals for the assessment....