TaxTMI 
TaxTMI 
TaxTMI 
2018 (6) TMI 1687
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....n 144C(13) of the Income Tax Act, 1961(hereinafter 'the Act'). 2. The only issue in this appeal of assessee is against the order of DRP and AO in disallowing the depreciation of goodwill. For this assessee has raised the following ground: - "1. Depreciation On Goodwill Resulting From Acquisition Of Business Unit of Lee & Muirhead Ltd. in A.Y. 2008-09. 1.1 On the facts and in the circumstances of the case and in law, the learned A.O. erred in not allowing Depreciation of Rs. 12,57,79,395/- claimed @ 25% under applicable provisions of Section 32 of IT Act on the Brought Forward Balance of Written Down Value of the Block of Assets of Rs. 50,31,17,578/- under the Head Intangible Assets-Goodwill, consisting of various Intangible Assets aris....
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..... (348 ITR 302) is not applicable in the present case and consequently erred in disallowing depreciation on intangible assets including goodwill. 1.7 On the facts and in the circumstances of the case and in law, the learned A.O. has erred in not considering the facts that the appellant Company's own case the Hon'ble ITAT has allowed the depreciation under section 32 of IT Act on goodwill consisting of various intangible assets arising out of the acquisition of business unit of Lee & Muirhead Pvt. Ltd for A.Y. 2008-09 and allowing Depreciation claimed @ 25% under applicable provisions of Section 32 of IT Act on Brought Forward Balance of Written Down Value of the Block of Assets under the Head Intangible Assets-Goodwill ,consisting....
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....ly claimed depreciation on goodwill being intangible assets. We also find from the record that similar issue was raised by the assessee in the assessment year 2008-09, which was decided in favour of the assessee vide order dated 23.8.2013 in Appeal No. CIT(A)-16/ Addl.CIT-8(1)/IT-190/2011-12 and thus, the issue is squarely covered in favour of the assessee by its own case in the earlier years. After considering the relevant records, orders of authorities below, we find that the similar issue has been decided by the FAA for the assessment year 2008-09 in favour of the assessee holding that the assessee was entitled to depreciation on goodwill by following the decision of Apex Court in the case of Smifs Securities Ltd (supra). We, therefore, ....
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....ved, the only reason for which the Assessing Officer disallowed assessee's claim of depreciation on goodwill is the claim has not been made through revised return of income. Undisputedly, the Assessing Officer has not disputed assessee's claim of depreciation on other fixed assets which were acquired under the business transfer agreement. The dispute is only confined to claim of depreciation on intangible asset. The Hon'ble Jurisdictional High Court in Prithvi Brokers and Shareholders Pvt. Ltd. (supra) after taking note of the ratio laid down by the Hon'ble Supreme Court in Goetze India Ltd. (supra) has held that even assuming that the Assessing Officer is not entitled to grant a deduction on the basis of a letter requesting an amen....
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....not claim depreciation on goodwill. Therefore, in the course of assessment proceedings, the assessee filed a revised computation claiming depreciation on goodwill. In our view, the depreciation claimed by the assessee on goodwill cannot be rejected merely for the reason that it is not made through a revised return of income. Further, the contention of the Department that by virtue of CBDT circular no.549 dated 31st October 1989, the assessed income cannot be less than the returned of income is also not acceptable in view of the decision of the Hon'ble Andhra Pradesh High Court in Bakelite Hylam Ltd. (supra) and the decision of Hon'ble Gujarat High Court in Gujarat Gas Co. (supra). 12. Having held so, now we have to consider whethe....