2017 (9) TMI 1650

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....uch. 3. In ground no. 2, the assessee-appellant has raised the following grievance:- "The Learned Commissioner (Appeals) erred in confirming the disallowance of the claim of provision for doubtful debt of Rs. 31,57,448/- and provision for doubtful advances of Rs. 5,57,805/- on ground that it is just provision and not admissible as expenses." 4. At the time of hearing before us, the ld. Counsel for the assessee submitted that this matter may be remitted to the file of the Assessing Officer for fresh adjudication in the light of Hon'ble jurisdictional High Court's full bench decision in the case of CIT vs. Vodafone Essar Gujarat Ltd in Tax Appeal No.749 of 2012. Learned Departmental Representative did not object to the same. In view of a....

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....laimed deduction of Rs. 54,85,430/- as depreciation on goodwill. In the course of hearing, the explanation regarding origin of such goodwill was given as under: "In accordance with the scheme of amalgamation of YSN Shares & Securities (P) Ltd with Smifs Securities Ltd (duly sanctioned by Hon'ble High Courts of Bombay and Calcutta) with retrospective effect from 1st April, 1998, assets and liabilities of YSN Shares & Securities (P) Ltd were transferred to and vest in the company. In the process goodwill has arisen i n the books of the company." 7. It was further explained that excess consideration paid by the assessee over the value of net assets acquired of YSN Shares and Securities Private Limited (amalgamating company) should be c....

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....ion 32(1) of the Act. One more aspect needs to be highlighted. In the present case, the Assessing Officer, as a matter of fact, came to the conclusion that no amount was actually paid on account of goodwill. This is a factual finding. The Commissioner of Income-tax (Appeals) ("the CIT(A)", for short) has come to the conclusion that the authorized representatives had filed copies of the orders of the High Court ordering amalgamation of the above two companies; that the assets and liabilities of M/s. YSN Shares and Securities Pvt. Ltd. were transferred to the assessee for a consideration ; that the difference between the cost of an asset and the amount paid constituted goodwill and that the assessee-company in the process of amalgamation ha....