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2010 (11) TMI 526 - AT - Income TaxDisallowane of depreciation - Assessee was the highest bidder at Rs. 550 crores accordingly claimed depreciation on the value of assets at Rs. 481.39 crores - The A.O. was of the view that the assessee had paid more amount than the book value and the difference amount was to be considered as goodwill - Section 43(1) is clear that the actual cost to be considered for the purpose of section 32 should be the actual cost paid by the assessee - Since the deal between the TISCO and the assessee company was at arms length price and since the parties are not related and there is no evidence that the transaction is a collusive one or done with an intention to reduce the tax liability and also further that there is no clause for payment of goodwill by the assessee in the Business Transfer Agreement – Appeal is dismissed
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