TMI Blog2013 (6) TMI 675X X X X Extracts X X X X X X X X Extracts X X X X ..... tion 32 of the Act. In these circumstances, we remit the issue to the file of the Assessing Officer to decide the issue in the light of the said decisions to consider the allowability of depreciation on intangible assets after getting bifurcation of payment of ₹ 75 lakhs and to allow depreciation on the goodwill at 25 per cent. Assessee himself has submitted that the learned Assessing Officer should have appreciated that during the previous year relevant to the assessment year 2008-09 the amount of ₹ 60 lakhs paid by the assessee-company for deduction of ₹ 15 lakhs in question qualifies for inclusion under the head "intangible asset" as provided under section 32(1)(ii) and is entitled to a depreciation at 25 per cent. o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... y the Assessing Officer for justifying such claim of deduction, the assessee had submitted that the said amount was paid to one M/s. Krishna Electronics, Vijayawada, towards transfer of leasehold rights of premises to the assessee. It was stated that the total amount of ₹ 60,00,000 was paid by them for transfer of leasehold rights for the Vijayawada branch and since the benefit of such payment is over a period of time, the company decided to defer recognising such expenditure over a period of four years and, hence, ₹ 15 lakhs was written off during the current year. The learned authorised representative submitted that the expenditure was wholly and exclusively for the purpose of business of the company and, hence, the same is de ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... same cannot be treated as an intangible asset. Accordingly, the Commissioner of Income-tax (Appeals) confirmed the order of the Assessing Officer in making the addition of ₹ 15 lakhs towards income of the assessee. 4. Aggrieved the assessee is in appeal before us. 5. Ground No. 1 is general in nature. Ground Nos. 4 and 5 regarding the addition of ₹ 8,46,440 and disallowance of amount of ₹ 2,33,000 have not been pressed by learned counsel for the assessee, therefore, the same are dismissed as not pressed. 6. The substantive grounds to adjudicate are ground Nos. 2 and 3 wherein it was stated that the amount of ₹ 15 lakhs qualifies for inclusion under the head intangible asset as provided under section 32(1)(i ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... on on the goodwill at 25 per cent. 8. In the result, appeal being I. T. A. No. 37/Hyd/12 is partly allowed for statistical purposes. I. T. A. No. 1482/Hyd/12-Appeal by the Revenue 9. In this case, the Commissioner of Income-tax (Appeals) has held that the assessee had taken the transfer of leasehold rights of M/s. Krishna Electronics, Vijayawada, which is running its business along with equipment, interiors and goodwill, and in turn paid ₹ 75,00,000 as consideration. Accordingly, the assessee amortised ₹ 15,00,000 by showing only ₹ 60,00,000 as consideration and the assessee had claimed depreciation at 25 per cent. The Commissioner of Income-tax (Appeals) held that the assessee has taken possession of premises a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... preciation at 25 per cent. on intangible assets. Hence, we direct the Assessing Officer to allow depreciation on goodwill at 25 per cent. on the intangible assets and with respect to furniture and fittings depreciation to be allowed at 10 per cent. since they fall under block of assets as furniture and fittings. The assessee is directed to give bifurcation of goodwill and furniture and fittings. 12. In the result, the appeal of the Revenue being I. T. A. No. 1482/Hyd/12 is partly allowed. 13. To sum up, the appeal being I. T. A. No. 37/Hyd/12 is partly allowed for statistical purposes and the appeal being I. T. A. No. 1482/Hyd/12 is partly allowed. Pronounced in the open court on June 28, 2013. - - TaxTMI - TMITax - Income Tax ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
