TaxTMI 
TaxTMI 
2022 (5) TMI 722
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....ear 2015- 16 on following grounds of appeal: "Based on the facts and circumstances of the case, Altimetrik India Private Limited ("the Appellant"), respectfully submits the following grounds of appeal before your Honours: 1. The directions of the Hon'ble Dispute Resolution Panel ("DRP") and the order of the learned Assessing Officer ("AO"), to the extent prejudicial to the Appellant, are bad in law and on facts. 2. Disallowance of depreciation on Goodwill 2.1. That on the fact and circumstances of the case, the Hon'ble DRP and the learned AO erred in law in disallowing the depreciation on goodwill by placing reliance on the sixth proviso to section 32(1)(ii) of the Income-tax Act, 1961 ("the Act")....
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....t Grant of credit of taxes deducted at source 3.1 The learned AO has erred in granting short credit of tax deducted at source amounting to INR 2,89,74,184. 3.2 The learned AO has erred in not granting credit of taxes deducted at source under the PAN of erstwhile Synova Innovative Technology Private Limited now merged with the Appellant. Each of the above grounds are independent and without prejudice to the other grounds of appeal preferred by the Appellant. The Appellant craves leave to add, alter, vary, omit, substitute or amend the above grounds of appeal, at any time before or at, the time of hearing, of the appeal, so as to enable the Honourable Income Tax Appellate Tribunal to decide this appeal acco....
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....o to section 32(1)(ii) of the Act. In view of the Ld.AO as per the said proviso, the aggregate deduction in respect of depreciation on goodwill allowable to the assessee ought not to exceed the deduction calculated at the prescribed rates as if amalgamation had not taken place and such deduction ought to have been apportioned between the assessee and Synova India (amalgamating company) in ratio of period of usage of assets. Aggrieved by the addition proposed in the DOA, the assessee filed its objections before the Dispute Resolution Panel. 4. The DRP held that the assessee's claim is not in accordance with the provisions contained in Explanation 7 to section 43(1) read with Explanation 2 to section 43(6)(c) of the Act read with sixth ....
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.... time in the books of the assessee as a result of the amalgamation. Therefore, the question of apportionment between the amalgamating company and the amalgamated company in the ratio of the number of days for which the assets were used by them does not arise. He placed reliance on the following decisions in support. 1. Smifs Securities Ltd. (2012) 348 ITR 302 (SC). 2. Aricent Technologies (Holdings) Ltd. [2019] 109 taxmann.com 47 (Delhi -Trib.) 3. Mylan Laboratories Ltd. (2020) 113 taxmann.com 6 (Hyderabad-Trib.) The Ld.DR placed reliance on the orders passed by authorities below. The Ld.DR relied on the decision of Coordinate Bench of this Tribunal in case of M/s. United Breweries Ltd. by order dated 30.09.....
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....algamation, when the amalgamating companies amalgamated, goodwill came into existence being the difference between the consideration paid by amalgamated company over and above the net asset value of the amalgamating companies. The reliance placed on the judgment of coordinate bench is misplaced in as much as in that case the value of the goodwill in the books of amalgamating company was only Rs.7.45 crores which has been shown by the assessee at Rs.62.30 croes and on this it was held by the appellate authority that the assessee has failed to justify the valuation of goodwill at Rs.62.30 crores. The facts of the case in hand clearly show the valuation of goodwill as per the valuation report and there is no quarrel in so far as the net asset ....
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....y it over value of net asset acquired of the amalgamating company amounted to goodwill for which the depreciation was to be allowed. The Hon'ble High Court of Delhi in the case of Hindustan Coca Cola Beverages Private Limited 331 ITR 192 has upheld the findings of the Tribunal that payments made towards business acquired on slum price and a part of the price so paid was allocated to the intangible asset covered under the head goodwill." 10. Hon'ble Supreme Court in the case of Smifs Securities Ltd. (supra) while considering an identical issue, held that goodwill arising on amalgamation to be a capital asset eligible for depreciation. The facts in the case of Smifs Securities Limited (supra) were similar to that of the present assesse....