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248). Appellant has also been placing reliance on the decision of Bombay High Court in case of CIT v. Aditya Birla Nuvo Ltd. [79 taxmann.com 210] which has also held that goodwill recognized in the books is eligible for depreciation.

It may be mentioned that in the case of the Appellant, the goodwill so recognized pursuant to the High Court's Order is self-generated. There is no restriction under income-tax law on claiming depreciation on self- generated goodwill once recognized in books. Depreciation under Section 32 is allowable on an asset "acquired". "Acquisition" cannot be restricted to "acquisition by way of purchase". Gujarat High Court in CIT v Mohanbhai Pamabhai (91 ITR 393] has held that self-generated assets are acquired the moment it is created. The relevant extract of the decision is reproduced below.

painting, sculpture or a building, he gains it, he comes to have it or to own it. He acquires the painting, sculpture or building by creating it. When a capital asset is created by an assessee, it becomes his property, he comes to own it and, therefore, he acquires it the moment it is created. Creation or production of a capital asset is not foreign to the concept of acquisition."

The above decision has been upheld by the Supreme Court.

The only question that arises in respect of a self-generated goodwill is its "cost". In cases where cost of self-generated goodwill is not determinable, it is not recognized in the books of accounts and consequently, depreciation on the same is not claimed. However, in the case of the Appellant, part of the cost of the self-generated goodwill has been specifically determined in pursuance of the order of the High Court and the said cost has been recognized and recorded in the books of the Appellant as per the order of the High Court. Once part cost of self-generated goodwill is determined pursuant to a court order, to that extent the cost of self- generated goodwill is ascertained, the self-generated goodwill can be recognized as an asset at the ascertained cost and depreciation on the said recognized cost can be claimed by the assessee.

It may also be mentioned that the Appellant has accumulated losses carried forward prior to AY 2016-17. As in AY 2015-16, the aggregate accumulated losses carried forward is INR 301,46,36,311. Thus, considering the accumulated unclaimed losses, the cost of self- generated goodwill identified and recognized in AY 2016-17, has not been claimed by the Appellant in previous years. The said cost is thus, allowable as depreciation claim for AY 2016- 17 and the same does not amount to double deduction.