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2017 (1) TMI 1615 - AT - Income TaxEntitled to depreciation u/s 32(1)(ii) with respect to the intangible assets - Held that:- As decided in assessee's own case [2015 (9) TMI 286 - ITAT MUMBAI] Distribution network rights acquired by the assessee have been found to be in the nature of ‘business or commercial rights’ for the purposes of section 32(1)(ii) of the Act. Although the Ld. CIT-DR has canvassed that the said finding is erroneous, so however, no specific error has been sought to be made out. - Decided in favour of assessee Depreciation on goodwill - Assessee had acquired Textile effects business from CIBA Speciality Ltd. also the Polyurethane business from ICI Ltd. in the earlier assessment years - Held that:- For both the aforesaid acquisition, assessee had paid a lumpsum consideration and the portion of purchase consideration, which was in excess of the value of tangible and intangible assets was treated as ‘goodwill’. The DRP noted that assessee had made the claim for depreciation on goodwill in the course of assessment before the Assessing Officer but there was no discussion in the draft assessment order. The DRP also noted that in assessment year 2006-07, the Tribunal in assessee’s own case had allowed the claim of the assessee and similar position prevailed in assessment year 2009-10, wherein the Tribunal allowed the claim too - Decided in favour of assessee Deduction u/s 43B - certain liabilities pertaining to the Textile effects division taken over from CIBA Speciality Ltd. - Held that:- , the direction of the DRP is based on the order of the Tribunal for assessment year 2007- 08, which continues to hold the field and, therefore, no fault can be found with the said decision of the DRP. Even otherwise, we find that the said plea of the Revenue is misconceived because in the final assessment order passed by the Assessing Officer no such deduction has been allowed. The Assessing Officer notes in para 14 of the assessment order that no such claim u/s. 43B of the Act has been put forth and, therefore, no deduction was warranted on this issue. In view of the said discussion in the assessment order, it is quite clear that the said Ground is otherwise also misconceived - decided against revenue Transfer pricing adjustment - international transactions on account of corporate service charges paid by the assessee to its associated enterprise - matter remitted back for reconsideration Addition u/s 14A - Held that:- No disallowance under section 14A can be made if there is no exempt income actually received by the assessee in the relevant year. We accordingly delete the disallowance made by the Assessing Officer and enhanced by the ld. CIT(Appeals) under section 14A read with Rule 8D. See case of Cheminvest Limited [2009 (8) TMI 126 - ITAT DELHI-B ].
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