2016 (3) TMI 169

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..... (Judicial Member) S. E. Dastur, Niraj Sheth and Vipul B Joshi for the appellant. Neil Philip for the respondent. ORDER 1. These are the appeals filed by the assessee against the order of the Commissioner of Income-tax (Appeals) for the assessment years 2002-03 to 2008-09, in the matter of the order passed under section 143(3) read with section 147 of the Income-tax Act, 1961. 2. The common grievance of the assessee in all the years pertains to disallowance of claim of depreciation on goodwill under section 32(1)(ii) of the Income-tax Act. 3. The rival contentions have been heard and record perused. Facts in brief are that the assessee-company, during the assessment year 2002-03, had taken the entire business as a .....

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..... l placed on record the order of the hon'ble Supreme Court in the case of CIT v. Smifs Securities Ltd. [2012] 348 ITR 302 (SC), wherein it was held that the principle of ejusdem generis would strictly apply while interpreting the expression of goodwill , which finds place in Explanation 3(b) to section 32(1). Accordingly it was held that goodwill is an asset under Explanation 3(b) to section 32(1) of the Act, therefore, eligible for claim of depreciation. The learned authorised representative also placed reliance on the following decision wherein goodwill was accepted as an asset eligible for claim of depreciation : (i) ThyssenKrupp Elevator (India) P. Ltd. v. Asst. CIT [2015] 167 TTJ (Delhi-Trib) 131; (ii) Deputy CIT v. World .....

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..... any other business or commercial rights of similar nature.' 10. Explanation 3 states that the expression 'asset' shall mean an intangible asset, being know-how, patents, copyrights, trademarks, licences, franchises or any other business or commercial rights of sim ilar nature. A reading the words 'any other business or commercial rights of similar nature' in clause (b) of Explanation 3 indicates that goodwill would fall under the expression 'any other business or com mercial right of a similar nature'. The principle of ejusdem generis would strictly apply while interpreting the said expression which finds place in Explanation 3(b). 11. In the circumstances, we are of the view that 'goodwill' is an a .....

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