TaxTMI 
TaxTMI 
2016 (12) TMI 459
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....the Revenue are common in both the appeals. 3. Ground No.1 is general in nature needing no specific adjudication. 4. Ground No.2 is related to depreciation on goodwill in both the assessment years. 5. During the assessment proceedings for assessment year 2010-11, the assessee made a fresh claim of depreciation for goodwill a sum of Rs. 1,16,80,000/-. The Assessing Officer refused the claim of the assessee since the claim was not made in the original return or by revised return. The Assessing Officer observed that no fresh claim can be made which results into reduction of income and it should be made through revised return income. Placing reliance on the judgment of Hon'ble Supreme Court in the case of Goetze India vs CIT, 284 ITR 323, the Assessing Officer rejected the claim. 6. Aggrieved by the order of the Assessing Officer, the assessee went on appeal before the CIT(A). During appellate proceedings, the CIT(A) entertained the claim of the assessee relying on Hon'ble Supreme Court judgment in the case of Jute Corporation of India Ltd vs CIT, 187 ITR 688, that the CIT(A) is permitted to admit any fresh claim which was not made during assessment proceedings. The CIT(A) ....
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....ver the value of net asset to the extent of Rs. 147.57 lakhs and claimed the same as cost of the goodwill. However, the Assessing Officer disallowed the claim of the assessee on the ground that the payment does not fall within the meaning of know-how, patent or copyright. The Assessing Officer has not considered the judgment of Apex Court in SMIFS Securities Ltd. (supra). The Apex Court, after considering the provisions of Explanation 3 to Section 32(1) of the Act found that the word "any other business or commercial rights of similar nature" in clause (b) of Explanation 3 indicates that goodwill will fall under the expression "any other business or commercial rights of similar nature". In view of the above judgment of Apex Court in SMIFS Securities Ltd., we are unable to uphold the orders of the lower authorities. Accordingly, we set aside the orders of the lower authorities. The Assessing Officer is directed to allow depreciation at the applicable rate on the payment relatable to goodwill. " 9. The facts are identical on the above issue and the ld. DR did not bring any other judgment of Hon'ble High Court or any other higher forum to controvert the above decision. Therefore,....
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..../Mds/ 2004 vide order dated 30.11.2007, in which it has been held has under: "Upon a careful consideration of the issue we find that, after amalgamation the assessee company is entitled to all the assets, claims, etc. of the erstwhile company, which is also supported by Hon'ble High Court order in this regard. Further, when the assessee company is now being assessed in place of erstwhile company and the TDS credit pertaining to the erstwhile company is being given credit to the assessee company, there is no reason why a different treatment should be given to the MAT credit available pertaining to the erstwhile company. We do not agree with the learned Commissioner of Income Tax (Appeals) that there is need for specific mention in this regard in Section 115JAA as the Carry forward of MAT credit of erstwhile company by amalgamated company is in-built in the scheme of amalgamation as well as the scheme of MAT credit. Hence, we set aside the order of learned Commissioner of Income Tax (Appeals) in this regard and decide the issue in favour of the assessee. " 12. The ld. CIT(Appeals), by following the above of the Tribunal, directed the Assessing Officer to allow the claim of th....
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....ved by the order of the Assessing Officer, the assessee went on appeal before the CIT(A) and the CIT(A) has confirmed the addition made by the Assessing Officer as per the following discussion made in para 5.2 of his order against which the assessee is in appeal before us: " I have carefully considered the facts and circumstances of the case. It is seen from the assessment order that A.O has made the disallowance after thorough verification of the above expenses. The apportionment made by the A.O appears to be logical and I am in agreement with the A.O's view. The appellant, even though, opposed the apportionment of the expenses, he has not proved in any way that such expenses were not incurred by Baddi unit at all. Therefore, the contentions of the appellant are not accepted and the disallowance made by the A.O in this regard is hereby confirmed. The ground is dismissed." 23. During appeal, the ld. AR did not bring any evidence to prove that the expenditure was completely relatable to Chennai Unit. It appears from the nature of expenses listed in the assessment order that he expenditure was common expenditure incurred for the purpose of carrying on the business by the assessee o....
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....titled for the said deduction. They constitute independent source of income beyond first degree nexus between the profits and the industrial undertaking. Aggrieved by the order of the CIT(A), the assessee is in appeal before the Tribunal. 27. Appearing for the assessee, the ld. AR argued that the DEPB entitlement and duty draw back are inextricably linked with the profits derived from industrial undertaking, therefore, entitled for deduction u/s 80IC of the Act. The DEPB entitlement and duty draw back are required to be included in the computation of deduction for the purpose of deduction u/s 80IC of the Act. Similarly, he has argued that focus marketing scheme expenses is to offset high freight cost and other externalities to select international markets with a view to enhance India's export competitiveness in some countries The export of products from duty credit scrips as stated above is inextricably connected with export activity carried out by the undertaking and hence, eligible for deduction u/s 80IC. Alternatively, the ld. AR submitted the income can be treated as abatement of cost in general and freight cost in particular whereby income is compensatory to freight cost maki....
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....dustrial Park or Software Technology Park or Industrial Area or Theme Park, as notified30 by the Board in accordance with the scheme framed and notified by the Central Government in this regard, in any of the North-Eastern States; (b) which has begun or begins to manufacture or produce any article or thing, specified in the Fourteenth Schedule or commences any operation specified in that Schedule, or which manufactures or produces any article or thing, specified in the Fourteenth Schedule or commences any operation specified in that Schedule and undertakes substantial expansion during the period beginning- (i)on the 23rd day of December, 2002 and ending before the 1st day of April, 31[2007], in the State of Sikkim; or (ii) on the 7th day of January, 2003 and ending before the 1st day of April, 2012, in the State of Himachal Pradesh or the State of Uttaranchal; or (iii) on the 24th day of December, 1997 and ending before the 1st day of April, 2007, in any of the North-Eastern States. (3) The deduction referred to in sub-section (1) shall be- (i) in the case of any undertaking or enterprise referred to in sub-clauses (i) and (iii) of clause (a) or sub-clauses (i) a....