TaxTMI 
TaxTMI 
2026 (3) TMI 1167
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.... Income Tax Act [hereinafter referred as "the Act"]. 2. There was a delay of 65 days in filing this appeal. The assessee has filed a condonation application along with affidavit of one Shri Dhiraj Panda, Managing Director of the assessee company, explaining the reason for delay. It has been submitted that the finance and legal team were pre-occupied with year-end financial closure activities and other statutory compliances. Further that the delay was neither intentional nor deliberate. Considering submission of the assessee, the delay in filing of the appeal is condoned. 3. The brief facts of the case are that the assessee had filed its return of income for A.Y. 2020-21 on 23.01.2021 declaring total income of Rs. 44,60,36,340/-. The c....
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....and in law, the Ld. PCIT has erred in holding that the assessment order is both erroneous and prejudicial to the interest of the Revenue without satisfying the twin conditions required under section 263 of the Act. 2. Erroneous Observations on Goodwill and incorrect disallowance of depreciation on Goodwill 2.1 On the facts and in the circumstances of the case and in law, the Ld. PCIT has erred in disregarding the bona fide nature of the business acquisitions undertaken by the Appellant, being the acquisition of the Asphalt Plant business from Gujarat Apollo Industries Limited ("GAIL") and the Sensor Paver business from Apollo Earth Movers Limited ("AEML") on a slump sale basis, and in questioning the resulting goodwill ari....
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.... the WDV for this year. He explained that the goodwill was created on acquisition of Gujarat Apollo Industries Ltd. By the assessee in the F.Y. 2013-14. The Ld. AR submitted that the Ld. PCIT had referred to upward adjustment of Rs. 116.32 crores in the A.Y. 2014-15 on account of depreciation of goodwill. However, the said upward adjustment by the TPO in A.Y. 2014-15 was deleted by the Co-ordinate Bench of this Tribunal in ITA No. 2262/Ahd/2018 dated 03.01.2022 and considering this fact the order of the AO could not have been held as erroneous. The Ld. AR further submitted that the Department had initiated proceedings u/s 148 of the Act in A.Y. 2018-19 on the ground of escapement of income in respect of depreciation of goodwill. However, th....
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....t the time of acquisition of Gujarat Apollo Industries Ltd. in the financial year 2013-14. Therefore, the exact quantum of goodwill was required to be quantified in the A.Y.2014-15. The exercise of quantification of goodwill could not have been carried out by the AO in the current assessment year. Once the depreciation on goodwill is allowed in the first year, the depreciation on goodwill for the subsequent years is required to be allowed as per the opening WDV for the respective years. It is not the case of the Ld. PCIT that the AO had allowed the depreciation on goodwill in this year on incorrect WDV. There is a reference of upward adjustment of Rs. 116.32 crores in A.Y 2014-15 on account of depreciation on goodwill by the DRP. However, t....
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....sional rate of sales tax. In case the C Form is not issued then the purchaser has to pay full amount of sales tax applicable in the state of the seller. It was explained that the forfeiture of Rs. 5,63,032/- was on account of non-submission of Form C by two parties and the forfeited amount was deposited with the sales tax department towards their additional sales tax liability. The fact that forfeited amount of Rs. 5.63 lakhs was deposited with sales tax department was also duly disclosed in the note to the audited accounts. Considering this fact, the forfeited amount of Rs. 5,63,032/- could not have been considered as income of the assessee. Otherwise also it was a tax neutral exercise, as the forfeited amount if considered as income, was ....