2025 (10) TMI 1423

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..../amalgamation transactions between the group company and when such creation of good-will itself was not justified. 4. Briefly stated the facts of the case are that during the year under consideration, three companies, namely, Pyramid Packaging Private Limited, Monad Technologies Pvt. Ltd and Sigma Corru Box Private Limited, were merged with the assessee w.e.f. 01/04/2016. The scheme was approved by the NCLT, Mumbai Bench vide its order dated 22/03/2017, with the appointed date of the said merger as 01/04/2016 effective from 01/05/2017. The assessee had paid total purchase consideration of Rs. 3,38,95,66,300/- for acquiring the above referred three companies whose net asset value as on appointed date was Rs. 1,75,00,70,889/-. The difference of Rs. 1,63,94,95,411/- has been accounted as Goodwill in the books of accounts of the assessee on which the depreciation was claimed which is under dispute. 5. It would be pertinent to refer to the assessment history for AY 2017-18 which year, the depreciation was first claimed by the assessee. The return for AY 2017-18 was selected for scrutiny assessment for the following reasons as per the notice u/s 143(2) of the Act, which reads as un....

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....will arising on account of the merger as an intangible depreciable asset." 9. With this factual background, the AO framed the assessment order dated 19/12/2019 and allowed the claim of depreciation on good will. 9.1. This means that during the year under consideration, the assessee has claimed depreciation on good-will on the written down value brought forward from earlier year. The Hon'ble Bombay High Court in the case of DIT (IT) vs. HSBC Asset Management (I)(P) Ltd. [2014] 47 taxmann.com 286 (Bombay), had the occasion to consider a similar situation where the depreciation was allowed in earlier assessment years and denied in subsequent assessment year. The Hon'ble High Court held as under:- "9. Having perused this Appeal Memo including the impugned orders, we are of the opinion that the Delhi High Court judgment has been delivered on 5th November 2012 and the impugned order was passed on 15th June 2011. The Tribunal has essentially based its conclusion on the consistent stand of the Assessee and that of the Assessing Officer. In dealing with the shift in stand for the subject assessment year, the Tribunal found that this claim of depreciation was raised in the ass....

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....ility of Section 80G is concerned. 13. We find that the Co-ordinate Benches have taken a consistent view that CSR expenditure can be claimed as a deduction u/s 80G of the Act in the following cases:- Motilal Oswal Securities Ltd. (ITA No. 1795/Mum/2023, order dated 18.08.2023), Allegis Services India Pvt. Ltd. (ITA No. 1693/Bang/2019), IMS Mining Put. Ltd. [130 taxmann.com 118 (Kolkata Trib.)] and Elan Pharma (India) Pot. Ltd. vs. PCIT in ITA No. 2419/Mum/2025. 14. Respectfully following the same, we do not find any reason to interfere with the findings of the ld. CIT(A). This Ground is accordingly dismissed. 15. In the result, appeals by the revenue are dismissed. Order pronounced in the Court on 6th October, 2025 at Mumbai. ============= Document 1 INCOME TAX DEPARTMENT भारत सरकार/ GOVERNMENT OF INDIA वित्त मंत्रालय/ MINISTRY OF FINANCE आयकर विभाग/ INCOME TAX DEPARTMENT विहित आयकर प्राधिकारी का ....

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....¤¯à¤¾à¤° करने में आपके ध्यान एवं परिश्रम को स्वीकार करते हुए, कुछ मुद्दों पर और स्पष्टीकरण की आवश्यकता है, जिनके कारण आपकी आय विवरणिका को संवीक्षा (जांच) के लिए चुना गया है, ये मुद्दे प्रारंभ में निम्नानुसार है: 2. While acknowledging the care and diligence you may have taken in preparing the return, there are certain issues which need fur....

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....° दें। 3. In view of the above, you may submit your response with supporting documents (if any) on the above mentioned issues to the Assessing Officer electronically in 'e-Proceedings' facility through your account in e-Filing website (www.incometaxindiaefiling.gov.in) at your convenience on or before 12/10/2019. 4. निर्धारण प्रक्रिया के दौरान यदि आवश्यक हुआ तो सूचना/कागजात के लिए विस्तृत प्रश्नावली या मांग पत्र बाद में जारी किया जाएगा। 4. In course of assessment proceedings, if required, specific questionnaire(s) or requisition(s) for information/document may be issued subsequently. 5. आप के स....

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....t, 1961 Sir/ Madam/ M/s, In connection with the assessment for the assessment year 2017-18 you are required to: a) Furnish or cause to be furnished on or before 18/11/2019 at 11:00 AM the accounts and documents specified overleaf. b) Furnish and verified in the prescribed manner under Rule 14 of I.T. Rules 1962 the information called for as per annexure and on the points or matters specified therein on or before 18/11/2019 at 11:00 AM. c) The above mentioned evidence/information is to be furnished online electronically in 'E-Proceeding' facility through your account in 'e-filing' website of Income Tax Department. d) Para(s) (a) to (c) are applicable if you have an account in e-filing website of Income Tax Department. Till such an account is created by you, assessment proceedings shall be carried out either through your e-mail account or manually (if e-mail is not available). e) In cases where order has to be passed under section 153A/153C of the Income Tax Act, 1961 read with section 143(3), assessment proceedings would be conducted manually. Yours faithfully, SONAL LAXMIDAS SONKAVDE CIRCLE 7(1)(2), MUMBAI Y900 BUAT 03811830 Note....