2016 (6) TMI 1244

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.... year 2007-08. 2. Pursuant to order dated 04.10.2013 passed by the ITAT, Delhi Bench 'E', New Delhi in MA No.331/Del/2012 in ITA No.511/Del/2011 AY 200708 order dated 04.10.2013, the present appeal has been listed to decide the ground no.4 which is as under:- "4. The learned Commissioner of Income Tax (Appeals) has erred both of facts and in law in upholding the actions of the learned assessing Officer in disallowing Rs. 3,44,531/- being depreciation on goodwill allegedly on the ground that the same cannot be treated as intangible asset as per the provisions Section 32 of the Income Tax Act, 1961." 3. Briefly stated the facts of this case are : during the scrutiny proceedings, notice under section 143(2) and 142(1) of the Inc....

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....5 ITR 421 (Delhi). However, on the other hand, ld. DR relied upon the order passed by the revenue authorities below. 8. Assessee claimed the depreciation on goodwill amounting to Rs. 3,44531/- in terms of section 32(1)(ii) of the Act, consisting of 'Type Test Certification Fees' and 'Customer Approval Fees' but CIT (A) has rejected the contention of the assessee on the ground that this submission has not been substantiated and the nature of the goodwill has not been explained by the documents. 9. Now, the sole question arises for determination in this case is "as to whether 'Type Test Certification Fees' and 'Customer Approval Fees' claimed by the assessee are eligible for depreciation u/s 32 of the Act?" 10. Hon'ble jurisdictional....

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....censes or franchises. The nature of "business or commercial rights" can be of the same genus in which all the six assets fall. All the above fall in the genus of intangible assets that form part of the tool of trade of an assessee facilitating smooth carrying on of the business. Held, that in the case of the assessee, intangible assets, viz., business claims; business information; business records; contracts; employees; and knowhow, were all assets, which are invaluable and resulted in carrying on the transmission and distribution business by the assessee, which was hitherto being carried out by the transferor, without any interruption. The intangible assets were, therefore, comparable to a license to carry out the existing transmi....