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2012 (8) TMI 304 - AT - Income TaxDisallowance of depreciation on goodwill - Held that:- As decided in B. Raveendran Pillai Versus CIT [2010 (9) TMI 434 - KERALA HIGH COURT ] goodwill is not specifically mentioned in section 32(1)(ii) of the Income Tax Act. Depreciation is allowable not only on tangible assets covered by clause (i) of section 32(1) but on the intangible assets specifically enumerated in clause (ii) and such of the other business or commercial rights similar to the items specifically covered therein - as the function of goodwill acquired by the assessee also is to maximizes the profits of the company & as the assessee's goodwill being a valuable commercial asset similar to other intangibles specified in the definition of block assets, is eligible to depreciation - in favour of assessee. Disallowance of provision for leave encashment - Held that:- As in Exide Industries Limited And Another Versus UOI And Others [2007 (6) TMI 175 - CALCUTTA HIGH COURT] wherein the Hon'ble Court has struck down sec.43B(f) which stated that leave encashment could be allowed only on actual payment, in these circumstances the assessing authority is directed to give deduction for the provision of Rs. 93,815/- made by the assessee towards leave encashment Apportionment of expenses - Held that:- As decided in favour of the assessee by the co-ordinate Bench of the Tribunal in assessee's own case that the CIT(A)on observing that the proportionate allocation made by the assessee-company is not sound and correct & adopted one of the methods of apportionments usual recognized in the matters of allocation of expenditure, that is, on the basis of unit-wise turnover and directed to apportion concerned common expenditures. In the absence of any evidence brought on record by AO, the method adopted by the CIT(A) is sustainable in law - thus the ground raised by the Revenue on this point of allocation of expenditure is not meritorious - The appeals filed by the Revenue are liable to be dismissed.
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