2019 (8) TMI 1115

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....e only ground raised by the assessee relates to the disallowance of Rs. 4,83,690, on account of depreciation of tenancy rights.   3. Brief facts are, the assessee is a partnership firm of Advocates, Solicitors and Notary. For the year under consideration, the assessee filed its return of income on 30th November 2012, declaring total income of Rs. 27,38,79,640. In the course of assessment proceedings, the Assessing Officer noticed that the assessee has claimed depreciation of Rs. 4,83,690, on tenancy rights by treating it as an intangible asset. When called upon to justify the claim, the assessee furnished a written submission stating that tenancy right is a intangible asset eligible for depreciation. However, the Assessing Officer d....

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....nt view of the Tribunal in assessee's own case in the preceding assessment years, we uphold the decision of learned Commissioner (Appeals) on the issue. Grounds raised are dismissed.   8. In the result, assessee's appeal is dismissed.   ITA no.6183/Mum./2016 Revenue's Appeal 9. The effective grounds raised by the Revenue are on the common issue of deletion of disallowance of payments made to the legal heirs of the deceased partners amounting to Rs. 1,57,32,275.   10. Brief facts are, during the assessment proceedings, the Assessing Officer noticing that the assessee has claimed deduction of an amount of Rs. 1,57,32,275, towards payment made to legal heirs of deceased partners called upon the assesse....

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.... use of goodwill, the firm was required to pay 5% of the net profit to the concerned partners or their legal heirs, as provided in the partnership deed. He submitted, such payment made by the firm for use of goodwill is an allowable expenditure. Further, he submitted, since the partnership deed specifically provided for payment to legal heirs of the deceased partners, a charge is created to that extent and the income to the extent of goodwill falling to the share of legal heirs of deceased partners is diverted at source by overriding title, hence, does not form part of the income of the assessee. In support of such submissions, the learned Counsel for the assessee relied upon a number of judicial precedents. Without prejudice, he submitted,....