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2015 (9) TMI 949 - AT - Income TaxDisallowance of depreciation of goodwill - Held that:- As find that in the case of B. Raveendran Pillai v. CIT [2010 (9) TMI 434 - Kerala High Court] the hon'ble High Court has held that when the goodwill paid was for ensuring retention and continued business, it was for acquiring a business and commercial rights and was comparable with trade mark, franchise, copyright, etc., rendered in the first part of clause 2 of section 32(1) and so much so, goodwill was covered by the above provision of the Act entitling the assessee for depreciation. We also find that the hon'ble apex court in the case of CIT v. Smifs Securities Ltd. [2012 (8) TMI 713 - SUPREME COURT] has held that goodwill is an asset under Explanation 3(b) to section 32(1). Before us, the Revenue has not pointed out any contrary binding decision in its support. In view of these facts and relying on the aforesaid decisions we are of the view that the assessee is eligible for depreciation. - Decided in favour of assessee. Addition on account of lump sum disallowance out of milgine and factory expenses as per para 5 of the appellate order - Held that:- While confirming the disallowance, the learned Commissioner of Income-tax (Appeals) has noted that no submissions were made by the assessee in respect of the aforesaid ground. Before us also apart from the general statement, no details have been filed by the assessee in support of its submissions. In view of the aforesaid facts, we find no reason to interfere with the order of the learned Commissioner of Income-tax (Appeals) and thus this ground of the assessee is dismissed. - Decided against assessee.
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