9911796707
TMI Blog2017 (9) TMI 722X X X X Extracts X X X X X X X X Extracts X X X X ..... he facts and circumstances of the case and in law, the Ld. CIT (A) has erred in allowing depreciation on Goodwill amounting to Rs. 99,33,180/- by holding Goodwill as an asset covered under Explanation 3(b) of section 32 of the I.T. Act, 1961." 2. Briefly stated the facts necessary for adjudication of the controversy at hand are : Assessing Officer noticed that assessee has claimed depreciation of Rs. 99,33,180/- on account of Goodwill. Assessee submitted before the AO that as per Business Transfer Agreement (BTA) dated 15.12.2005, the assessee has purchased the Quality Registrar (QR) division of KPMG (seller) as an on-going concern on slump sale basis and the consideration paid by the assessee over and above the book value of the net curr ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ed 26.07.2017 for AY 2007-08 in assessee's own case. 6. We have gone through the order passed by the coordinate Bench of the Tribunal in assessee's own case for AY 2007-08 (supra) and for facility of reference, the operative part thereof is reproduced for ready perusal as under :- "8. We have considered the submissions of both the parties and carefully gone through the material available on the record. It is noticed that an identical issue was a subject matter of the departmental appeal for the assessment year 2008-09 in ITA No. 5540/De1/2013 wherein by following the judgment of the Hon'ble Supreme Court in the case of CIT Vs Smifs Securities Ltd., the issue has been decided against the department and in favour of the assessee. The releva ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... paid over the value of net current asset KLPM in terms 0 B T A dated 15.12.2005, which was treated as goodwill in its books, however, the same was an aggregation of various intangible asset comprising pending customers contracts intangible property rights, assemble work forces and customers relationship etc. Being intangible asset in nature each of such item was separately eligible for depreciation in view of the provisions of explanation 3 (b) to Section 32(1). 6.3 Moreover, the Hon'ble Supreme Court in the case of cit Vs Smifs Securities Ltd. (supra), while held that goodwill is an asset, which is covered under Explanation 3(b) to Section 32(1) of the Act, which would fall under the expression "any other business or commercial right ..... X X X X Extracts X X X X X X X X Extracts X X X X
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