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2016 (12) TMI 296 - AT - Income TaxClaim on account of depreciation on the merged bank losses treated as Intangible Assets - Held that:- The impugned goodwill cost of the merged banks, has been held to result in the acquisition of an asset in the nature of 'business or commercial rights' and therefore amounts to intangible asset, the action of the Assessing Officer in not allowing depreciation on the goodwill cost cannot be sustained. The business advantages detailed earlier, are liable to be considered as an intangible asset, being ‘business or commercial rights of similar nature’ contemplated u/s 32(1)(ii) of the Act. In our considered opinion, the plea of the assessee for allowance of depreciation in terms of section 32(1)(ii) of the Act cannot be faulted either in law or on facts. Disallowance under section 43D - Held that:- As decided in assessee’s own case for assessment year 2009-10 we find no reason to interfere with the order of CIT(A) and thus the ground of assessee is dismissed. Disallowance of provision for standard assets - Held that:- AR has fairly conceded that on an identical issue in the case of Sindhudurg Dist. Central Co-op. Bank Ltd. [2012 (3) TMI 492 - ITAT PUNE] the Co-ordinate Bench has decided the issue against the assessee pointed out that claim for deduction of an expenditure is liable to be governed by the provisions of the Act and not merely on account of the RBI guidelines. In our view, the ratio of the judgment of the Hon’ble Supreme Court the case of Southern Technologies Ltd. (2010 (1) TMI 5 - SUPREME COURT OF INDIA) clearly applies to the present case and the claim of the assessee has been rightly rejected by the lower authorities.
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