TMI Blog2020 (1) TMI 1105X X X X Extracts X X X X X X X X Extracts X X X X ..... ER PER SHAMIM YAHYA, AM: This appeal is arising out of the order of Dispute Resolution Panel-I, Mumbai [in short DRP ], in objection No. 67 vide direction dated 25.09.2017. The Assessment was framed by the Dy. Commissioner of Income Tax circle 9(3)(1), Mumbai (in short ACIT/AO ) for the assessment years 2013-14 vide order of dated 30.11.2017, under section 143(3) read with section 144C(13) of the Income Tax Act, 1961(hereinafter the Act). 2. The only issue in this appeal of assessee is against the order of DRP and AO in disallowing the depreciation of goodwill. For this assessee has raised the following ground: - 1. Depreciation On Goodwill Resulting From Acquisit ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the circumstances of the case and in law, the learned A.O. has erred in not considering the facts that the appellant Company's own case the Hon ble ITAT has allowed the depreciation under section 32 of IT Act on goodwill consisting of various intangible assets arising out of the acquisition of business unit of Lee Muirhead Pvt. Ltd for A.Y. 2008-09 and allowing Depreciation claimed @ 25% under applicable provisions of Section 32 of IT Act on Brought Forward Balance of Written Down Value of the Block of Assets under the Head Intangible Assets-Goodwill consisting of various Intangible Assets arising out of the acquisition of business unit of Lee Muirhead Pvt. Ltd for AY. 2009-10. It is prayed that the learned A.O. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ee s own case for AY 2009-10 in ITA No. 2146/Mum/2015 vide order dated 25.07.2016, wherein Tribunal following the decision of Hon ble Supreme Court in the case of CIT vs. Smifs Securities Ltd. 348 ITR 302 (SC)deleted the disallowance of depreciation by observing in Para 6 as under: - 6. We find from the record that the assessee has rightly claimed depreciation on goodwill being intangible assets. We also find from the record that similar issue was raised by the assessee in the assessment year 2008-09, which was decided in favour of the assessee vide order dated 23.8.2013 in Appeal No. CIT(A)-16/ Addl.CIT-8(1)/IT-190/2011-12 and thus, the issue is squarely covered in favour of the assessee by its own case in the earlier y ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... assets. As it appears, in the original return of income the assessee claimed depreciation on all other fixed assets except the intangible asset viz. goodwill. In the course of assessment proceedings, the assessee filed a revised computation of income claiming depreciation @ 25% amounting to ₹ 39,75,25,000 on intangible asset of ₹ 159.01 crore. On a perusal of assessment order, it is observed, the only reason for which the Assessing Officer disallowed assessee s claim of depreciation on goodwill is the claim has not been made through revised return of income. Undisputedly, the Assessing Officer has not disputed assessee s claim of depreciation on other fixed assets which were acquired under the business transfer agreement. The d ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rd. If we examine the facts relating to assessee s claim of depreciation on intangible asset, it is apparent that all facts relating to the payment made towards goodwill are available in the annual report of the assessee submitted along with the original return of income. In fact, goodwill appears in the schedule of fixed assets. Thus, it is obvious that due to inadvertent mistake, the assessee could not claim depreciation on goodwill. Therefore, in the course of assessment proceedings, the assessee filed a revised computation claiming depreciation on goodwill. In our view, the depreciation claimed by the assessee on goodwill cannot be rejected merely for the reason that it is not made through a revised return of income. Further, the conten ..... X X X X Extracts X X X X X X X X Extracts X X X X
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