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2016 (2) TMI 84 - AT - Income TaxAddition on account of depreciation on goodwill - CIT(A) deleted the disallwoance - Held that:- The issue in controversy has already been decided by the Coordinate Bench in the case of Nitrex Chemical India Ltd. (2015 (11) TMI 340 - ITAT DELHI ) by relying upon the judgement delivered by Hon'ble Supreme Court in case of CIT Vs SMIF Securities Ltd. in SLP (2012 (8) TMI 713 - SUPREME COURT) to the effect that "the goodwill is an asset under Explanation (3 b) to Section 32(1) of the Act" and as such, is intangible asset, being know how, patent, copyright, trade mark licence, franchise and other business or commercial right of similar nature, the same is eligible for depreciation u/s 32 of the Act as claimed by the assessee. Since Ld. D.R. has failed to bring on record if the order passed in case of DCIT Vs Nitrex Chemical India Ltd. (supra) has been challenged or any contrary order has been passed on the question of law decided by the Hon'ble Supreme Court, we are of the considered view that there is no illegality or perversity in the findings returned by Ld. CIT(A) hence, ground is determined against the Revenue. Addition on account of royalty paid - revenue v/s capital - CIT(A) deleted the addition - Held that:- Held that:- In the instant case, benefit of enduring nature has to be transferred to the assessee company as is evident from Article 6 of the Agreement. Transfree company i.e. CEIPL would get 3% of the net selling price of the licensed products manufactured by the licensee, calculated as per Article 6 of the agreement, meaning thereby, transferee company (CEIPL) was having complete lien on the technical know-how, assisting skills and other expertise as per Article 4 of the agreement. So, finding no illegality or perversity in the findings returned by Ld. CIT(A), ground is also determined against the Revenue.
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