TaxTMI 
TaxTMI 
2025 (10) TMI 1005
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....he 'impugned order') is cryptic and passed without assigning any reasons. 2. The Learned CIT(A) and AO have erred in disallowing depreciation under Section 32 of the Act on goodwill recognized in the course of amalgamation scheme. The CIT(A) and AO failed to appreciate that goodwill is an asset under Explanation 3(b) to Section 32(1) of the Act. 3. The Learned CIT(A) and AO have erred in holding that amalgamation is a colourable device through which goodwill has been created by entities of the same group, leading to consequent tax evasion, as no reasons are thereafter discussed for forming this conclusion. Said conclusion is derived only on the of assumptions and presumptions. 4. The learned CIT(A) and AO ....
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....appeal at the time of or before the hearing of the appeal. Total Tax Effect Rs. 24,03,04,786/-" 3. Bakeri Projects Private Limited ("BPPL") had filed its return of income for AY 2016-17 on 7 October 2016 declaring total loss of Rs. 20,91,35,518. The case was selected for complete scrutiny under CASS and a notice for e-proceeding under section 143(2) was generated and duly served to the appellant. During the course of the assessment proceedings, the appellant filed detailed submissions before the learned Assessing Officer ("AO") providing all relevant explanation/information sought by AO along with supporting documentary evidences. During the previous year under consideration, BPPL and Bakeri Engineering and Infrastructure Pvt. L....
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....e Assessing Officer as well as CIT(A) erred in disallowing depreciation u/s. 32 of the Act on goodwill recognized in the course of amalgamation scheme. The goodwill is an asset under explanation 3(b) to section 32(1) of the Act. The conclusion of the Assessing Officer as well as CIT(A) that amalgamation is a colourable device through which goodwill has been created by entity of the same group leading to consequent tax evasion is not justified as it is based only on the assumptions and presumptions. The ld. A.R. submitted that the Assessing Officer as well as the CIT(A) failed to appreciate that in absence of goodwill forming part of the assets in the books of the amalgamating company or in absence of goodwill forming part of block of assets....
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.... Ltd. 155 TC 283 Gujarat f. Urmin Marketing (P.) Ltd. 122 TC 40 Ahmedabad g. Zydus Wellness Ltd. 76 TC 328 Ahmedabad h. Zydus Wellness Ltd. 113 TC 154 Supreme Court i. Dalmic Power Ltd. 420 ITR 339 Supreme Court j. Purbanchal Power Company Ltd. 145 TC 215 Calcutta k. Gautam Sarabhai Trust No. 23 81 ITD 677 Ahmedabad l. Electrocast Sales India Ltd. 170 ITD 507 Kolkata m. TVS Motors Co. Ltd. 128 ITD 47 Chennai n. KIFS International LLP 682/Ahd/2023 Ahmedabad 6. The ld. D.R. relied upon the assessment order and the order of the CIT(A). 7. We have heard both the parties and perused all the relevant material available on record. It is pertinent to note that th....
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....m depreciation. In the case of Zydus Wellness Centre Ltd. Vs. DCIT, the ITAT allowed the claim of depreciation on goodwill arising on amalgamation claimed by the assessee during the course of assessment proceedings by filing revised computation of income and without filing revised return of income. In both the cases the authorities have relied upon the judgment of Hon'ble Supreme Court in the case of Smifs Securities Ltd. In the case of Smifs Securities Ltd. (supra), paras 4 to 7 read as under. "4. Explanation 3 states that the expression 'asset' shall mean an intangible asset, being know-how, patents, copyrights, trademarks, licences, franchises or any other business or commercial rights of similar nature. A reading th....
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.... of Goodwill is required to be reduced from the Opening WDV in such cases, where the Goodwill is already forming part of Block of Assets. * Section 50: Computation of capital gains in case of depreciable assets has been amended to provide that where goodwill forms part of block of asset for assessment year 2020-21 and depreciation has been claimed, the written down value of the block and short-term capital gains would be determined in the prescribed manner. Rule 8AC has been prescribed for this purpose. * Section 55: Meaning of 'Cost of Acquisition' in case of Goodwill of Business or Profession has been amended to provide that * in case it is acquired from a previous owner, the cost would be the amount of ....