2022 (12) TMI 1581

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....the Income Tax Act, 1961 (for short "the Act"), consequent to the directions of Hon'ble Dispute Resolution Panel, Bengaluru ("DRP"), assessee filed this appeal. 2. Brief facts of the case are that the assessee is a company incorporated under the Companies Act, 1956 and is engaged in the business of manufacturing active pharmaceutical ingredients, finished dosage formulations and high-quality generic injectable products. For the assessment year 2015-16, they have filed their return of income on 25/11/2015 declaring a total loss of Rs. 6 63, 21, 33, 012/-under the normal provisions of the Income Tax Act, 1961 (for short "the Act") and book profit of Rs. 57, 63, 26, 317/-under section 115 JB of the Act. Since the assessee entered into int....

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....ign Investment Promotion Board, and it followed by a merger of Agila and Onco with the assessee duly approved by the Hon'ble High Court at Hyderabad. The assets and liabilities of these two entities were transferred to the assessee and the fair value was recorded in the books of assessee at Rs. 55 crores, and the balance sale consideration to the tune of Rs. 4331 crores was recorded as identifiable intangible assets and goodwill in respect of which the assessee claimed depreciation. 5. During the assessment year 2014-15 the depreciation was claimed for the second half of the financial year at the rate of 12.5% Rs. 561.6 crores and for the assessment year 2015-16 it was claimed at 25% on the brought forward goodwill of Rs. 3931 crores. ....

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....entitled to the claim of depreciation as it does not satisfy the mandatory conditions prescribed in the sixth provision to section 32(1) of the Act and Explanation-3 and 7 to section 43(1) of the Act. 7. Assessee is challenging this denial of depreciation on the goodwill. At the outset, it is contended by the learned AR that subsequent to the directions of the learned DRP in this matter for the assessment year 201516, a Co-ordinate Bench of this Tribunal decided the issue involved here for the assessment year 2014-15 by order dated 13/11/2019 in ITA No. 2335/Hyd/2018 and 12/Hyd/2019 accepting the contention of the assessee by following the decision of the Hon'ble Apex Court in the case of CIT Vs. Smifs Securities Ltd., (2012) 24 taxman....