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
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
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
generating or internally
generated goodwill. According to accounting standards, depreciation
is provided for acquired goodwill as it involves cost. However, in the
case of self ... generated or internally generated goodwill, there is no
cost. Therefore, even in accounting standards, no depreciation is
provided on self-generated goodwill because such goodwill
asset' and since the technical know-how in question was self-generated, the provisions of Section 45 of the Act cannot be attracted ... supra), no capital gains tax be levied on the sale of self-generated goodwill.
19. In the result, the appeal is partly allowed
assessee company paid
consideration for the goodwill of the amalgamating company, since the goodwill
is a self generated asset of the amalgamating company, its cost ... opinion that in the case of appellant is a self generated goodwill at the
time of amalgamation in the hands of amalgamating company and hence
assessee company paid
consideration for the goodwill of the amalgamating company, since the goodwill
is a self generated asset of the amalgamating company, its cost ... opinion that in the case of appellant is a self generated goodwill at the
time of amalgamation in the hands of amalgamating company and hence
Srinivasa Shetty (1981) 128 ITR 294 (SC) for
the proposition that self-generated goodwill is nebulous in
character and cannot be depreciated. The Assessing Officer ... taxmann.com 560
(Mumbai), to hold that depreciation on self-generated goodwill is
not allowable. The CIT(A) accordingly upheld the Assessing
Officer
assessee company paid
consideration for the goodwill of the amalgamating company, since the goodwill
is a self generated asset of the amalgamating company, its cost ... opinion that in the case of appellant is a self generated goodwill at the
time of amalgamation in the hands of amalgamating company and hence
assessee company paid
consideration for the goodwill of the amalgamating company, since the goodwill
is a self generated asset of the amalgamating company, its cost ... opinion that in the case of appellant is a self generated goodwill at the
time of amalgamation in the hands of amalgamating company and hence
