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2014 (2) TMI 263 - AT - Income TaxValidity of re-assessment u/s 147 - Held that:- Assessee has not claimed any deduction in respect of unpaid sales tax liability of Alpa Marketing Enterprises of Rs. 16,180/- since beginning - The question of any disallowance of this amount or escaping any income from assessment did not arise - The re-opening of assessment was not valid - Decided in favour of assessee. Disallowance of depreciation - Held that:- Assessee has paid Rs. 80 lacs towards intangible assets on acquisition of business of M/s. Alpa Marketing Enterprises - This consideration was paid towards intangible assets on acquisition of business and be considered as the goodwill - Relying upon the decision in CIT vs. Smith Securities Ltd. [2012 (8) TMI 713 - SUPREME COURT] - Goodwill was an asset as per explanation 3 to Section 32(1) of the Act and therefore depreciation on the same should be allowed - The issue has been restored for fresh adjudication. Non-granting of credit for TDS - Held that:- Income relating to this TDS has been offered in assessment year 01-02 & 2002-03 but TDS certificate was received late - The credit of tax was claimed during the year under appeal - Decided in favour of assessee. Disallownace of interest expenses - Held that:- Funds borrowed by assessee were used by the assessee for business purposes and interest was paid by assessee to the lender and same was offered to tax - The AO has observed the requirement of funds by the appellant - The borrowings so made are represented by the business assets of the appellant, it is not the case that the amount so obtained has been diverted for non-business purpose - The disallowance should be deleted - Decided against Revenue.
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