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2019 (4) TMI 1471 - AT - Income TaxDisallowance on account of depreciation on goodwill - extra consideration paid for acquisition of assets - AO submitted that the assessee has failed to demonstrate before the AO towards the bonafides of creation of ‘goodwill’ - HELD THAT:- The essential controversy involves maintainability of claim of depreciation on cost of goodwill by the assessee. The assessee has claimed extra consideration paid towards acquisition of net value of assets of Interkraft Autocity Pvt. Ltd. with a view to acquire the dealership of Mercedes-Benz embedded with the concern covering the state of West Bengal and entire North-East. Thus, there can be no quarrel that extra consideration paid for acquisition of assets and the business of the concern represents cost of goodwill. This being so, the assessee would be entitled in law for claim of depreciation thereon in view of case of Smiffs Securities Ltd [2012 (8) TMI 713 - SUPREME COURT] . Therefore, we find no infirmity in the conclusion drawn by the CIT(A) in favour of the assessee. Thus, we decline to interfere. - Decided against revenue
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