2018 (6) TMI 1658

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....1.2016 passed by the DCIT, Circle4(1)(2) Ahmedabad. 2. The main issue involved in this appeal as to whether the order passed by the CIT(A) in treating the balancing figure of Rs. 12,13,33,735/- at the time of amalgamation as goodwill and allowing the depreciation of Rs. 3,03,33,434/- on the same is sustainable in the eye of law. 3. The assessee-company is engaged in the business of manufacturing and sale of Neutraceuticals and trading in low caloric and cosmecueticals products. The assessee in the AY 2013-14 had claimed depreciation of Rs. 3,03,33,434/- on goodwill of Rs. 12,13,33,735/-. The AO asked for the details regarding the cost of acquisition of goodwill. The assessee in response to the same, submitted the details showing that th....

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....he Approved Scheme, the appellant has treated the excess of liabilities over assets as 'goodwill' and has claimed depreciation there upon. As stated above the AO has held that since the above amount is only the 'balancing amount', the same cannot be treated as cost of goodwill. The appellant relied on the judgment of Supreme Court in the case of Smifs Securities Ltd. which the AO denied by stating that in this case the Supreme Court has decided that goodwill is an asset but has not clearly adjudicated as far as the valuation of goodwill is concern. However, as discussed by the CIT(A) in her order for the A.Y. 2011-12 the issue with identical facts as in the appellant's case has been dealt by Hon'ble ITAT, Mumbai in order dated 13.10.2014 in....

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....on goodwill in assessee's own case for the AYs 2010-11, 2011-12 and 2012-13, copies whereof were also placed on record by him. 5. We have heard the Ld.representatives of the respective parties. We have perused relevant materials on record. We have also gone through the judgement of the Hon'ble Gujarat High Court wherein the issue has been decided in favour of assessee in assessee's own case for AYs 2010-11, 2011-12 & 2012-13. The Hon'ble Gujarat High Court while dismissing the appeal preferred by the Revenue against the order passed by this Ld.Tribunal in Tax Appeal No.346 of 2018, dated 16.04.2018 observed as follows:- "6. With respect to the claim of depreciation, the decision of Supreme Court in case of Smifs Securities Ltd. (supra)....