TaxTMI 
TaxTMI 
2019 (7) TMI 25
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....The order of the learned CIT(A) is opposed to law and facts of the case. 2. "Whether on the facts and circumstances of the case the CIT(A) is justified in law in not considering that the business transferred to M/s. VF has been basically with all its divisions and operations other than the operation of Factory and the Exclusive Brand Outlets [EBOs] 3. "Whether on the facts and circumstances of the case the CIT(A) is justified in law in considering that the intangible assets on which depreciation is claimed by the assessee come under the purview of Explanation 4 to Section 32 of the 1. T. Act"? 4. The C1T(Appeals) has erred in allowing the depreciation on Customer Relationship (CR) & Vendor Relationship (VR) considering them to fall un....
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.... followed the judgment of Hon'ble Apex Court rendered in the case of CIT Vs. Smifs Securities Ltd. as reported in 348 ITR 302 and the Tribunal has reproduced the relevant para of this judgment of Hon'ble Apex Court and respectfully following the same, the Tribunal has decided the issue in favour of the assessee regarding allowability of depreciation on goodwill. 4. We have considered the rival submissions. We find that as per ground no. 3 of appeal raised by the revenue as reproduced above, this is the grievance of the revenue that CIT(A) has erred in allowing the claim of Depreciation on Intangible assets and as per Ground No. 5, this is the grievance of the revenue that CIT(A) has erred in allowing the claim of Depreciation on Goodwill t....
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....Pvt. Ltd. (supra). Para nos. 12 to 12.5 of this Tribunal order are relevant in this regard and hence, the same are reproduced hereinbelow. "12. The next question arises about the allowability of the cost incurred by the assessee in connection with the business. In our view, such deductions cannot be disallowed on a technical basis. Supposing the assessee does not allocate the expenses under the head design and technical know-how and it prefers to allocate the same under the head goodwill. There is no dispute for the depreciation on the goodwill as held by the Honourable Supreme Court in the case of semifs securities Ltd. reported in 348 ITR 302 wherein it was held as under: 4. Explanation 3 states that the expression 'asset' sha....
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....the assessee-Company stood increased. This finding has also been upheld by Income Tax Appellate Tribunal ['ITAT', for short]. We see no reason to interfere with the factual finding. 7. One more aspect which needs to be mentioned is that, against the decision of ITAT, the Revenue had preferred an appeal to the High Court in which it had raised only the question as to whether goodwill is an asset under Section 32 of the Act. In the circumstances, before the High Court, the Revenue did not file an appeal on the finding of fact referred to hereinabove. 8. For the afore-stated reasons, we answer Question No.[b] also in favour of the assessee. 12.1 Thus in our considered view there could not have been any dispute regarding the claim....
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....of depreciation was raised in the assessment year 2003-2004. The Assessee claimed that it is allowable as per the provisions of Income Tax Act on block of assets under the head "intangible assets". The Assessing Officer allowed the claim for that assessment year by an order under Section 143(3) dated 28.03.2006. The Tribunal then, proceeds to hold that when the Assessing Officer had to allow depreciation on the written down value of the block of assets, then, it cannot in the present assessment year dispute the opening written down value of the block of assets nor can he examine the correctness or otherwise of the opening written down value brought forward from the earlier year. The order under Section 143(3) for the assessment year 20032....
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....ould fall under the expression 'any other business or commercial 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). 5. In the circumstances, we are of the view that 'Goodwill' is an asset under Explanation 3(b) to Section 32(1) of the Act. 6. 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) ['CIT(A)', for short] has come to the conclusion that the authorised representatives had filed copies of the Orders ....