2016 (3) TMI 169

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....n 147 of the Income-tax Act, 1961. 2. The common grievance of the assessee in all the years pertains to disallowance of claim of depreciation on "goodwill" under section 32(1)(ii) of the Income-tax Act. 3. The rival contentions have been heard and record perused. Facts in brief are that the assessee-company, during the assessment year 2002-03, had taken the entire business as a going concern of M/s. St. Angelo's Computers, which was carrying on the activity of imparting professional computer training since 1991 at Mumbai from 14 different centres. The business was acquired for a lump sum consideration of Rs. 5,25,00,000. The assessee attributed Rs. 4,85,00,000 towards goodwill and business knowhow. The value of consideration was d....

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.... Explanation 3(b) to section 32(1) of the Act, therefore, eligible for claim of depreciation. The learned authorised representative also placed reliance on the following decision wherein "goodwill" was accepted as an asset eligible for claim of depreciation : (i) ThyssenKrupp Elevator (India) P. Ltd. v. Asst. CIT [2015] 167 TTJ (Delhi-Trib) 131; (ii) Deputy CIT v. Worldwide Media P. Ltd. [2014] 30 ITR (Trib) 181 (Mumbai) ; (iii) PPG Asian Paints P. Ltd. v. Asst. CIT (LTU) I. T. A. No. 2919/ Mum/2013, dated April 15, 2015 [2015] 43 ITR (Trib) 307 (Mum) ; (iv) Toyo Engineering India Ltd., I. T. A. No. 3279/Mum/2008, dated October 13, 2014 ; (v) CIT v. Birla Global Asset Finance Co. Ltd. [2014] 221 Taxman 176 (Bom) (Mag.) ; and ....

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....hts of similar nature' in clause (b) of Explanation 3 indicates that goodwill would fall under the expression 'any other business or com mercial right of a similar nature'. The principle of ejusdem generis would strictly apply while interpreting the said expression which finds place in Explanation 3(b). 11. In the circumstances, we are of the view that 'goodwill' is an asset under Explanation 3(b) to section 32(1) of the Act." 7. The co-ordinate Bench of the Tribunal in the case of PPG Asian Paints P. Ltd. v. Asst. CIT (LTU) [2015] 43 ITR (Trib) 307 (Mum), held as under (page 308) : "In view of the categorical finding of the hon'ble Supreme Court that the goodwill also falls under the expression 'any oth....