assets
on nominal value and no depreciation was claimed. The claim of depreciation
on non-compete fees and goodwill was rejected by the Assessing Officer ... depreciation. Hence, he directed the
Assessing Officer to disallow depreciation on all the assets acquired in slump
sale accordingly. Since the depreciation on goodwill
have allowed depreciation on goodwill, inasmuch as, there was no cost
involved in the acquisition of goodwill since, the goodwill is created by
passing book ... depreciation on goodwill, there is no quarrel on
the legal proposition that the goodwill, know-how being intangible assets
are eligible for depreciation
with
respect to depreciation on goodwill.
In this regard, the ld.AR has submitted that the assessee
has filed a letter dt.05.02.2015 ... before the Assessing Officer for grant of
depreciation on goodwill to the assessee. However, the Assessing
Officer has not mentioned anything about allowing or disallowing
business loss under section 28 of the Act.
3. Disallowance of depreciation on goodwill recorded on
amalgamation :
3.1. On facts and in the circumstances ... Appellant had separately claimed
depreciation on intangible assets of Rs.1,464 crores in addition to
depreciation on total goodwill of Rs.4,492 Crores
directing the Assessing Officer to examine the
matter regarding claim of depreciation on Goodwill, which is not
permitted under provision of Section ... reported at 348 ITR 302 (SCJ
allowing the claim of depreciation on goodwill it was held as under:
"Section 32 of the Income
depreciation claimed on goodwill on the ground
that goodwill is self-generated and the assessee has not justified
valuation of goodwill in a scheme ... self-generated goodwill but falls into the category of purchased
goodwill. From the above facts, it is clear that goodwill recorded in the
books
following additions/ disallowances
before the Tribunal:
AY/Additions Depreciation on Depreciation on Total
noncompete fee goodwill ... appeals before us only above
two issues of depreciation on non-compete fee and depreciation on goodwill
have been raised by the assessee, thus respectfully
they cannot claim depreciation
over and above normal depreciation allowable on a particular asset.
13. In this case, there was no goodwill in the books ... company should be
considered as goodwill arising on amalgamation and such goodwill is a capital asset
eligible for depreciation. Therefore, from the above facts
same, goodwill has been created in the books of the Company. Such goodwill is eligible
for claim of depreciation under section ... Eligibility to claim depreciation
It is submitted that schedule 4B of the Financial Statement of the Company reflects
depreciation on goodwill as per the Companies
purchase of goodwill under amalgamation as against the
goodwill created was completely overlooked and ought to have
appreciated that the depreciation on goodwill allowed ... company should be considered as goodwill
arising on amalgamation and such goodwill is a capital asset
eligible for depreciation. Therefore, from the above facts
