TMI Blog2019 (8) TMI 1115X X X X Extracts X X X X X X X X Extracts X X X X ..... view of the Tribunal in assessee s own case in the preceding assessment years, we uphold the decision of learned Commissioner (Appeals) on the issue. Disallowance of payments made to the legal heirs of the deceased partners - HELD THAT:- Allowability of payment made to the legal heirs of deceased partners towards share in goodwill is a recurring issue between the parties continuing from the preceding assessment years. Though, the AO in the preceding assessment years has made similar disallowance, however, when the issue came up for consideration before the Tribunal, it was held that the payment made to the legal heirs of the deceased partners is allowable as deduction. In the latest order passed for the assessment year 2011 12 the Tri ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... at the assessee has claimed depreciation of ₹ 4,83,690, on tenancy rights by treating it as an intangible asset. When called upon to justify the claim, the assessee furnished a written submission stating that tenancy right is a intangible asset eligible for depreciation. However, the Assessing Officer did not accept assessee s claim considering the fact that in assessee s own case, the Tribunal has held that tenancy right is not a depreciable asset. Accordingly, he disallowed assessee s claim of depreciation. 4. Learned Commissioner (Appeals) also sustained the disallowance made by the Assessing Officer. 5. Shri Hiro Rai, the learned Counsel for the assessee fairly submitted that the issue has bee ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... on the common issue of deletion of disallowance of payments made to the legal heirs of the deceased partners amounting to ₹ 1,57,32,275. 10. Brief facts are, during the assessment proceedings, the Assessing Officer noticing that the assessee has claimed deduction of an amount of ₹ 1,57,32,275, towards payment made to legal heirs of deceased partners called upon the assessee to explain why the deduction claimed should not be disallowed. In response, it was submitted that as per the terms of the partnership deed, assessee has to pay 5% of the net profit to the retired partners or the legal heirs of the deceased partners on account of goodwill of the partners. It was submitted, since the payment made was for the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d for payment to legal heirs of the deceased partners, a charge is created to that extent and the income to the extent of goodwill falling to the share of legal heirs of deceased partners is diverted at source by overriding title, hence, does not form part of the income of the assessee. In support of such submissions, the learned Counsel for the assessee relied upon a number of judicial precedents. Without prejudice, he submitted, the issue has been decided in favour of the assessee in the preceding assessment years and there being no change in facts, the decisions of the Tribunal in the preceding assessment years would squarely apply. In this context, he drew our attention to the latest order of the Tribunal passed for the assessment year ..... X X X X Extracts X X X X X X X X Extracts X X X X
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