2016 (8) TMI 1561

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

...., Revenue has raised the following Grounds of appeal: "1. Whether on the facts and in the circumstances of the case and in law the Ld. CIT(A)-8, Mumbai, was justified in holding that the assessee is entitled to the claim of amortization/depreciation on Goodwill of Rs. 3,58,16,000/- without appreciating the fact that Goodwill is depreciable u/s 32 of the Act only if any consideration is paid for its acquisition and the assessee has not earmarked any specific amount towards such goodwill at the time of amalgamation. 2. The appellant prays that the order of CIT(A) on the above ground be set aside and that of the Assessing Officer be restored." 3. The solitary controversy in this appeal arises from the action of CIT(A) in d....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....ngly, the claim was rejected in the instant year also. 5. Before the CIT(A), assessee made multiple claims; firstly, claiming deduction of 1/5th cost of goodwill in terms of amalgamation scheme approved by the Hon'ble High Court and alternatively, claimed depreciation on the goodwill. The CIT(A) affirmed the disallowance of claim of amortization of goodwill of Rs. 3,58,16,000/-, but he allowed the claim of depreciation following the ratio of the judgment of the Hon'ble Supreme Court in the case of Smifs Securities Ltd., 348 ITR 302 (SC). Against the action of CIT(A) in allowing the claim of depreciation, Revenue is in appeal before us. 6. Before us, the only plea of the Revenue is that in the present case assessee has not paid....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....t of the Transferee Company only as an amortization over a period of 5 years." On the basis of the aforesaid, assessee pointed out that it determined the value of goodwill at Rs. 17,90,82,000/- which was in accordance with the scheme of arrangement approved by the Hon'ble High Courts. Accordingly, 20% thereof, i.e., Rs. 3,58,16,400/- was amortized in each of the 5 years starting from Assessment Year 2005-06 by way of debit in the Profit & Loss Account. Thus, in the instant year assessee claimed amortization of Rs. 3,58,16,400/- by contending that the claim was in terms of the directions of Hon'ble High Court passed while approving the scheme of arrangement. The said claim has been denied by the Assessing Officer and also by the CIT(....