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2022 (5) TMI 722 - AT - Income TaxDepreciation on Goodwill - goodwill arising on amalgamation - HELD THAT:- Hon’ble Supreme Court in the case of Smifs Securities Ltd. (supra) while considering an identical issue, held that goodwill arising on amalgamation to be a capital asset eligible for depreciation. The facts in the case of Smifs Securities Limited [2012 (8) TMI 713 - SUPREME COURT] were similar to that of the present assessee. The consideration paid by the amalgamated company over and above the net assets of the amalgamating company should be considered as goodwill arising on amalgamation. Based on the above, we are of the opinion that the depreciation claimed by the assessee on goodwill acquired deserves to be allowed in accordance with law. Ld.AO is directed to compute depreciation in accordance with the principles laid down in case of Smifs Securities Ltd. Assessee appeal allowed. Short credit of tax deducted at source - AO is directed to verify and grant credit in accordance with the law.
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