TaxTMI 
TaxTMI 
2023 (9) TMI 846
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.... (for short 'the Tribunal') in the respective appeals being ITA No. 304 and 305 of 2020. 2. Since the questions of law are common, the same of Tax Appeal No. 404 of 2023 are reproduced as under: (a) Whether in the facts and circumstances of the case and in law, the learned ITAT has erred in setting aside the revision order u/s 263 of the I.T Act passed by the Pr. CIT without considering the provisions of section 43(6) of the Act? (b) Whether in the facts and circumstances of the case and in law, the learned ITAT has erred in not considering the decision of Hon'ble Supreme Court in the case of Deniel Merchants (P) Ltd. vs. ITO [2018] 95 taxmann.com 366 (SC) dealing with the identical situation of acceptance of explanatio....
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....r. This indicates that the aforesaid goodwill is a self acquired asset, the actual cost of which in the hands of the demerged company is "Nil". Since, the actual cost of the goodwill in the hands of the demerged company is "Nil", which should naturally follow that the WDV of the same would also be "Nil" in its hands. Therefore, after demerger, WDV of the same has to be taken "Nil" in the hands of the assessee company, being the resulting company in view of the explanation to section 43(6) of the Act which provides that the WDV of the block of the assets in the hands of resulting company (assessee company) shall be the WDV of the block of assets of the demerged company immediately before the demerger. Further, the Pr. CIT observed that 6th P....
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....ife Healthcare Pvt. Ltd. effective from 15.06.2015. He would submit that in the process of demerger, goodwill amounting to Rs. 275.40 crores being the difference between the net assets and shares to be issued was created by the assessee company on which depreciation amounting to Rs. 51,63,70,941/- was claimed for the year under consideration i.e. Assessment Year 2016-17. On records, it was found that no such goodwill was reflected in the balance sheet of the demerged company. Since it is a self-acquired asset, the actual cost in the hands of the demerged company is nil and hence the WDV was also nil. 5.1 Mr. Patel would submit that the Assessing Officer had failed to follow the explanation 2B to Section 43(6) of the Act where it is made ....
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....ct of assessee's claim of depreciation during the course of assessment proceedings, factually as well as legally, while allowing the assessee's claim of depreciation on goodwill . 9. Now, the second issue that arises for our consideration is whether the assessee took a view which is legally plausible/sustainable in law." 7. Reading the order indicates that the Tribunal found that the assessee had furnished various factual and legal submissions dated 19.12.2017 where the assessee relied upon the case of Commissioner of Income Tax, Kolkata vs. Smifs Securities Ltd [348 ITR 302 (SC)]. As observed by the Tribunal that the Assessing Officer had considered the action of granting approval and also the Valuation Report. Since therefore ....