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2014 (9) TMI 315 - ITAT AHMEDABADDepreciation on goodwill – Held that:- The depreciation on goodwill is allowable - The objections of authorities below are not founded on sound legal principles - The authorities have misconstrued the provisions of section 32 of the Act, while rejecting the claim of the assessee - the authorities have doubted the transactions effected by the assessee-company - CIT(A) has proceeded on the assumption that the contracts as entered into by the assessee-company were not genuine - Such assumption was on the basis that the assignment agreement was executed on a plain-paper and termination agreement was executed on a stamp-paper - Under the Contract Act, there is no distinction between a contract executed on plain-paper and executed on a Stamp-paper. Both the contracts are enforceable under the Contract Act - Any non-payment of the stamp duty attracts the provisions of the respective Stamp Act - The authorities have not given any finding as to how this contract is the sham transaction without even examining the persons who have executed the same – it could not be held that the transactions were sham or otherwise not for business purpose – following the decision in CIT vs. Smifs Securities Ltd [2012 (8) TMI 713 - SUPREME COURT] - the assessee is eligible for depreciation on goodwill as claimed and this addition made on this count is hereby directed to be deleted – Decided in favour of assessee. Levy of interest u/s.234B – Held that:- The Finance Bill introduced was passed in both the Houses of Parliament, receiving the assent of the hon'ble President of India, on May 11, 2001 - Till that time, the assessee could not have visualized that the individual liability would be fastened on him - the assessee fairly deposited a sum by way of self-assessment before the date of filing the return which also proved the bona fide credentials of the assessee - the authorities below were not justified in levying the interest u/s.234B of the Act, when the liability to pay the tax is due to retrospective amendment in the provisions of section 115JB of the Act - Decided in favour of assessee.
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