TaxTMI 
TaxTMI 
2012 (2) TMI 551
X X X X Extracts X X X X
X X X X Extracts X X X X
....ncome tax Act, 1961, for the assessment year 2002-03. The grievances raised in the appeal and the cross objection are somewhat interconnected, and, are required to be disposed of together. 2. The revenue in its ground raised the following grievance: "The learned CIT(A) erred in directing the AO to treat the data base as plant and allow depreciation on it accordingly. 3. The assessee in its cross objection raised the following grievances: "1. On the facts and in the circumstances of the case, the ld ACIT erred in objecting the order of the CIT(A) on the ground that the business database of American Express Services India Ltd., is not a plant through which the business is carried on by the respondent, without appreciat....
X X X X Extracts X X X X
X X X X Extracts X X X X
....d for the purpose of the business is not an intangible asset eligible for depreciation under section 32 of the Act." 4. Briefly stated, the material facts are like this. The assessee is a joint venture between Tata Finance Ltd and American Express International. It is engaged in the business of money changing, foreign exchange and other related services as permitted by Reserve Bank of India, in the capacity of a full fledged money changer. On 1st September, 2001, the assessee purchased 4 foreign exchange service locations of American Express-TRS (legal entity: AEB India) for a consideration of Rs. 26.77 crores. The above consideration had the following composition:- Acquired business Data Base Rs.12 crores Net current assets ....
X X X X Extracts X X X X
X X X X Extracts X X X X
....ue. The CIT(A) also upheld AO's declining depreciation as goodwill. None of the party is satisfied. While assessee is mainly aggrieved that the CIT(A) ought to have held that depreciation is admissible in respect of full amount paid by it for Acquired Business Database, and that he ought to have upheld admissibility of depreciation on goodwill as well, the Assessing Officer is aggrieved that the CIT(A) ought to have declined depreciation entirely in respect of Acquired Business Database. The assessee has raised a further alternative plea that entire payment for acquiring database should be allowed as revenue deduction, but learned counsel did not really press the same. 7. We have heard the rival contentions, perused the material on r....
X X X X Extracts X X X X
X X X X Extracts X X X X
....hen the C.O.No.202/Mum/2009 Assessment year: 2002-03 valuation of Acquired Business Database has been examined by TPO while concluding that the database price adjustment for the said year and no adverse inferences have been recorded in respect of the same, there could be no good reason for the AO to deviate from the stand of the TPO and substitute his own opinion as to what should be the correct price at which Acquired Business Database should have been purchased. In this view of the matter and in the light of the judgment of Hon'ble Delhi High Court in the case of Oracle India P. Ltd (supra), we are of the considered view that the CIT(A) was indeed in error in restricting the value of Acquired Business Database at Rs. 3 crores as again....