succession of business, the assessee
transferred all the assets (including self generated goodwill) and liabilities
of the proprietary concern and in consideration for the said ... following grounds:-
a) The assessee has transferred self-generated goodwill of Rs.
2,29,84,701/- to the company. However, the said goodwill was never
depreciation on goodwill is concerned, the ld.
CIT(A) disallowed 100% depreciation claimed on goodwill on the ground
that goodwill is self-generated ... assessee by way of goodwill. Therefore, the
ld. CIT(A) opined that the goodwill is not self-generated, but, the
assessee company paid excess consideration
capital gain on sale of self-generated goodwill. The assessing officer took the view
that the said sum was not a self-generated goodwill ... received sum of Rs. 75,00,000/- on sale of his self generated goodwill which was
deposited in the CGDS Scheme. The assessee had therefore
self-generated goodwill, which is not permissible in
law. He relied on AS-26, which clearly states:
"Internally generated goodwill should not be recognized ... approved scheme was negative.
h. Depreciation on non-existent asset or self-generated goodwill is
not allowable.
i. In absence of asset
from the said certificate that no value for so-called 'self-generated
goodwill' has been assigned by the valuer. Therefore, the claim ... appellant that the said
company RMIPL had self-generated goodwill valuing Rs.2,99,42, 138/- at the time of
amalgamation, is contradictory to facts
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 ... Supreme Court.
The only question that arises in respect of a self-generated goodwill is its
"cost". In cases where cost of self
goodwill.
3.3. On facts and in circumstances, of the case and in law, the Ld.
CIT(A) erred in allowing depreciation on goodwill ... crores (out of
total goodwill of Rs.4.492 crores) as self-generated goodwill without
appreciating that an actual consideration of Rs.43,860 million
self-generated goodwill
which is not acquired but created by the enterprise itself Ind AS 38-
Intangible Assets provides as under:
Internally generated goodwill
.................................
.................................
Hence ... depreciation is normally allowed on the self-generated goodwill
in accounting as it is not an intangible asset".
Thus the erstwhile firm from which
Standard. Such expenditure is often described as
contributing to internally generated goodwill. Internally generated goodwill is not
recognised as an asset because ... assessee or
internally generated. And as per AS-38 no depriciation is available on self
generated goodwill being not intangible asset.
22. In fifth alternative
over
the net assets acquired is recognized as goodwill. The Assessing Officer
therefore held that no goodwill capable of depreciation under section ... amalgamation. The Assessing
Officer further observed that the alleged goodwill represented merely a self-
generated intangible asset and did not constitute any independently
identifiable business
