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"2. The Revenue' sole substantive grievance raised in the instant appeal seeks to reverse the CIT(A)'s action deleting disallowance of depreciation on goodwill amounting to Rs.187,50,000/- made by the Assessing Officer in his regular assessment framed on 31.03.15. The CIT(A)'s detailed discussion to this effect reads as under:
"4. GROUND NO. 3:
This ground is directed against the action of the A.O. in disallowing depreciation on goodwill for an amount of INR 187;50,000/-. The goodwill in subject was acquired during merger of two companies i.e. the erstwhile Shristi Infrastructure Development Corporation Limited with Peerless Abasan Finance Page | 5 Shristi Infrastructure Development corporation; A.Y. 2016-17 Limited in accordance with the orders of the Delhi High Court & Calcutta High Court. Subsequently, the name of Peerless Abasan Finance Limited was changed to Shristi Infrastructure Development Corporation Limited. The difference between the cost of net assets and the amount paid by the transferee company, in terms of scheme of Amalgamation, was recorded as goodwill, i.e. for Rs. 10,00,00,000/-.
3. Suffice to say, it has come on record that the CIT(A) has followed his order on the very issue in preceding assessment year 2011-12 whilst deleting the impugned disallowance claim on goodwill in question.

Page | 10 Shristi Infrastructure Development corporation; A.Y. 2016-17 Learned authorized representative has placed on record this tribunal's coordinate bench's order in ACIT vs. M/s Shristi Infrastructure Development Corporation Ltd. in ITA No.1663/Kol/2016 dated 25.09.19 in the said earlier assessment year upholding the CIT(A)'s action to this effect as follows:

As informed in our earlier hearings, the erstwhile Shristi Infrastructure Development Corporation (having its registered office at Delhi) had merged into Peerless Abasan Finance Limited (PAFL) as per order of both Hon'ble High Court at Delhi & Hon'ble High Court at Kolkata and then the name PAFL was changed to Shristi Infrastructure Development Corporation Ltd.

As per the amalgamation scheme, the difference between the cost of the net assets and the amount paid by the transferee company, pursuant to amalgamation, has been recorded as goodwill. Hence, based on the aforesaid, a sum of INR 100,000,000 has been recorded as goodwill in the books of SIDCL during F. Y. 2006-07.The Hon'ble SC has, in the case of SMIFS Securities (2012)24 taxmann.com 222(SC) held that goodwill in the form of difference between the amount paid and the cost of the net asset acquired from the amalgamating company is an asset eligible for depreciation under the Act. The ruling of SMIFS securities has also been followed by the Bombay High Court in the case of Birla Global Asset Finance Co. Ltd (Income Tax Appeal No. 6835 of 20 10) and Toyo Engineering India Ltd (TS-811-HC-20 12BOM). Goodwill has arisen in the books of SIDCL in the FY 2006-07. The company has not Page | 11 Shristi Infrastructure Development corporation; A.Y. 2016-17 claimed depreciation on goodwill in any Assessment Year prior to A. Y. 11-12.

12.We have heard both the parties and perused the material available on record. We note that pursuant to scheme of amalgamation approved by the Hon'ble High court of Delhi on 22nd May, 2007 and Hon'ble Calcutta High Court on 20th June, 2007, the erstwhile Shristi Infrastructure Development Corporation Ltd. merged with Peerless Abasan Finance Ltd. (PAFL). Post-merger, the name of Peerless Abasan Finance Ltd. was changed to Shristi Infrastructure Development Corporation Ltd. In terms of the Scheme of amalgamation, the purchase consideration paid by PAFL to erstwhile Shristi Infrastructure Development Corporation Ltd. exceeded the cost of net assets taken over. Consequently, a sum of INR 100,000,000 was recorded as goodwill in the books of the assessee during the FY 2006-07.For the assessment year under consideration, the assessee filed a revised return of income and claimed depreciation on goodwill recorded in books at the rate of 25% being an eligible asset in terms of section 32(1) of the Act.