M/S. Vertiv Energy Pvt. Ltd(Formerly ... vs Pr. Cit -1, Thane on 20 February, 2023
8. Further, Ld. Pr.CIT relying on the decision in the case of Signoda
India Limited v. Dy. CIT [2021 ITA No. 954/H/2019] observed that the
Hon'ble ITAT Hyderabad Tribunal has held the view that depreciation on
goodwill created by the assessee on account of amalgamation is not
allowable to the company which is acquiring the business. Further, he
addressed the various issues raised by the assessee in support of the
Assessment Order passed dated 30.12.2019 and reasons for selection, he
6
ITA NO.788, 789 & 790/MUM/2022 (A.Y: 2016-17)
Vertiv Energy Private Limited
observed that the case of the assessee was selected for the reasons other
than claim of depreciation on goodwill and on perusal of notice issued u/s
142(1) of the Act he observed that Assessing Officer has not called for the
details in respect of claim of depreciation on goodwill and assessee has
not filed submissions in respect of claim of depreciation on goodwill. By
observing the above, he came to the conclusion that Assessing Officer has
not made enquiry or verification during the course of the assessment
proceedings in this case and therefore the Assessment Order passed u/s.
143(3) of the Act on 30.12.2019 is erroneous in so far as prejudicial to
the interest of the Revenue and as such Explanation 2(a) to section 263(1)
of the Act is attracted in the case of the assessee. Accordingly, he set
aside the order of the assessment and directed the Assessing Officer to
examine the above discussed issue and redo the assessment after
affording adequate opportunity to the assessee.