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ST. ANGELO’S COMPUTERS LTD. Versus INCOME-TAX OFFICER & DEPUTY COMMISSIONER OF INCOME-TAX

2016 (3) TMI 169 - ITAT MUMBAI

Disallowance of claim of depreciation on "goodwill" under section 32(1)(ii) - Held that:- We direct the Assessing Officer to allow the assessee's claim of depreciation on "good-will" in all the years under consideration as goodwill also falls under the expression 'any other business or commercial right of a similar nature' and thus would be an asset under Explanation 3(b) to section 32(1) of the Act - Decided in favour of assessee. - I. T. A. No. 6874/Mum/2011, I. T. A. Nos. 133 to 138/Mum/2011 .....

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ll 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 going concern of M/s. St. Angelo's Computers, which was carrying on the activity of imparting professional computer training since 1991 at Mumbai from 14 different centres. The busines .....

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the field of computer education, trained instructors, books, course material developed for providing training in computer applications, working pattern, education methodology, etc., which basically was developed over a period of time with the object of ensuring the best quality training in computer application. In the return of income the assessee claimed depreciation on "good-will". The Assessing Officer declined the assessee's claim of depreciation on the "goodwill" on .....

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hat 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 depre .....

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ational Ltd., order dated February 7, 2013 (Bombay High Court). 5. On the other hand, the learned Commissioner of Income-tax-Departmental representative relied on the orders of the authorities below. 6. We have carefully gone through the decision of the hon'ble Supreme Court in the case of CIT v. Smifs Securities Ltd. [2012] 348 ITR 302 (SC) and the decision of the hon'ble Bombay High Court as well as decision of co-ordinate Bench of the Tribunal cited at bar. The hon'ble Supreme Cou .....

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