TaxTMI 
TaxTMI 
2025 (10) TMI 203
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....umstances of the case and law, the Ld.CIT(A) has erred in deleting the disallowance made by AO on account of depreciation of Goodwill of Rs. 5,63,75,000/- which is not allowable as per provision of income tax act. 2 That on the facts and in the circumstances of the case and in law, the Ld. CIT(A) has erred in deleting the addition made by the AO on account of depreciation of Goodwill despite the Assessee failed to produce the evidence of acquisition and its ownership." 3. There is a delay of 536 days in filing the present Appeal by the Revenue. The Department of Revenue filed an application for condoning the delay on the ground that the Appeal could not be filed on time due to Colvid-19 situations and relying on the Judgment of ....
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....2016) 65 Taxmann.com 288 (Delhi High Court) allowed the appeal of the Assessee. Aggrieved by the order of the Ld. CIT(A) dated 10/08/2020, the Department of Revenue preferred the present Appeal on the grounds mentioned above. 6. The Ld. Departmental Representative vehemently submitted that the Ld. CIT(A) erred in deleting the disallowance made by the A.O on account of depreciation of good-will of Rs. 5,63,75,000/-, which is not eligible as per the provision of Income Tax. The Ld. Departmental Representative relying on the findings and the conclusion of the Assessment Order sought for reversing the order of the Ld. CIT(A). 7. Per contra, the Assessee's Representative submitted that the order of Panji and Bangalore Bench of the Trib....
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....ies Ltd. (Bangalore Tribunal) (supra). However, the issue of good-will has been examined by the Hon'ble Delhi High Court in the case of CIT Vs. Hindustan Coca Cola Beverages Pvt. Ltd. (2011) 198 Taxmann.com 104 (Delhi), wherein The Hon'ble Delhi High Court held as under:- "Goodwill of the company comprises of: (a) payment made to bottlers at the time of acquisition of their business, and (b) the difference between the consideration paid for business and the value of tangible assets determined by a reputed valuer. The specific payment for goodwill referred to in (a) above represents the consideration for the marketing and trading reputation, trading style and name, marketing and distribution territorial know how and information ....
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....less the sum total of its parts. The 'Financial Reporting Standard 10' issued by Accounting Standard Board which is applicable in United Kingdom and by the Institute of Chartered Accountants of Ireland in respect of its application in the Republic of Ireland, explains that the accounting requirements for goodwill reflect the view that goodwill arising on an acquisition is neither an asset like other assets nor an immediate loss in value. Rather, it forms the bridge between the cost of an investment shown as an asset in the acquirer's own financial statements and the values attributed to the acquired assets and liabilities in the consolidated financial statements. [Para 16] In view of Accounting Standard 10 as issued by ....