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2018 (5) TMI 2076 - ITAT CHENNAIDisallowance u/s 32 - goodwill shown by the assessee in its books was an unreal and artificially inflated one - HELD THAT:- Assessee had worked out the share swap ratio considering net worth of the rental division of M/s. Mtandt Ltd transferred to it and divided such net worth with value of its own share as on 31.12.2011. The valuation of the rental division was supported by a certificate issued by a competent Chartered Accountant and Revenue has not placed anything on record to prove that the valuation was unfair or incorrectly done. In our opinion goodwill which came into the books of the assessee on account of rounding off of the decimal in share swap ratio was not an artificial one. Issue of equity shares by the assessee to M/s. Mtandt Ltd was not artificial but real. Even in the case of Smifs Securities Ltd [2012 (8) TMI 713 - SUPREME COURT] considered goodwill was result of an scheme of amalgamation which is not much different from a scheme of demerger. In the circumstances, we are of the opinion that the lower authorities fell in error in disallowing the claim of depreciation. Orders of the lower authorities are set aside. Depreciation claimed by the assessee stands allowed.
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