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2009 (10) TMI 620 - AT - Income TaxPenalty - Depreciation on revalued assets and disallowed under s. 43(1) - It is well-known that registered valuers are experts and value and reliability of their opinion would depend upon the material contained in their reports - It was for the AO to point out and find defect in the value (cost shown) claimed and proceed to determine the actual cost - It is evident from above that burden of proof was placed on the assessee whereas it should have been otherwise as discussed above. This placing of the wrong burden sometimes vitiate the entire order - It has been taken at nil because it was not an asset with the erstwhile firm. In my considered opinion, there is no nexus between material on record and the conclusion of nil cost drawn in this case - Because hoardings were not shown as an asset by the erstwhile firm, their "actual cost" was "determined" at nil without denying the fact that assessee had paid Rs. 4,77,96,000 for the hoardings Proceeding to the question of actual cost of goodwill or trade name, it is well established that goodwill is an important asset of business which is acquired over a period of time - Merely because goodwill acquired by the firm was not shown as an asset or was shown at slightly less figure and no depreciation was claimed by the firm, its value was taken at nil - In these days of high inflation, value of immovable properties like land and buildings have jumped several fold and there is no comparison between the value/worth of a building and its WDV in books Tribunal in the case of Unimed Technologies Ltd. vs. Dy. CIT (1999 -TMI - 55267 - ITAT AHMEDABAD-A) is also considered relevant as in above case, valuation report furnished by the assessee in support of cost of the assets acquired was accepted by the Tribunal, as AO did not appoint his own valuer nor thought it necessary to examine assessee's valuer - Appeal is dismissed
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