TMI Blog2020 (10) TMI 279X X X X Extracts X X X X X X X X Extracts X X X X ..... ise its return of income. CIT(A), being an appellate authority, was empowered to do so. Furthermore, this claim of the assessee has been accepted by the Tribunal in AY 2011-12 [ 2018 (9) TMI 615 - ITAT MUMBAI] which has been followed by Ld. CIT(A). Therefore, this plea of the revenue was to be rejected and we find no infirmity in the action of Ld. CIT(A) in admitting assessee s claim by relying upon the cited decision of the Tribunal in assessee s own case for AY 2011-12. Assessee s new claim arises out of business transfer agreement dated 17/11/2009 and this was the first year of claim which would have consequential impact on subsequent years. AO had no occasion to consider the assessee s claim since the claim was not admitted and no ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... eals, the appeals were heard together and are now being disposed-off by way of this consolidated order for the sake of convenience brevity. First, we take up appeal for AY 2010-11. 2. The Ld. DR, drawing our attention to the grounds of appeal, submitted that learned first appellate authority erred in admitting fresh claim of the assessee and further, the relief has been granted to the assessee on account of depreciation on goodwill merely by relying upon the decision of Tribunal for AY 2011-12 without verifying the valuation of goodwill. Per Contra, Ld. AR submitted that the issue is squarely covered in assessee s favor by the decision of this Tribunal for AY 2011- 12, ITA No.2695/Mum/2017 order dated 07/09/2018. A digital copy of the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... aimed certain depreciation on goodwill in terms of the decision of Hon ble Supreme Court in the case of Smifs Securities Ltd. (24 taxmann.com 222) However, relying upon the decision of Hon ble Supreme Court in Goetz India Ltd. V/s CIT (284 ITR 323), Ld. AO refused to admit the same since the claim was made after expiry of time allowed for filing of revised return of income u/s 139(5) of the Act and the assessee had not claimed the same by way of filing revised return of income. 4.3 The learned CIT(A) opined that the claim not made in the return of income could be made before appellate authorities and therefore, the claim was to be admitted. It was noted that the assessee acquired PDP division of an entity namely L T Ltd. on slump sal ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e claim of depreciation on goodwill by relying on ITAT decision in assessee s own case for AY 2011-12 and the Apex Court decision in the case of Smifs Securities Ltd. (384 ITR 302), which amounts to admitting of additional evidences.; without appreciating the fact that the CIT(A) is governed by the provisions of Sec. 251 r.w.r. 46Aof the IT Rules and hence, should have remanded the issue to the file of AO for verification. iii) On the facts and circumstances of the case and in law, the Ld. CIT(A) has erred in in allowing the claim of depreciation on goodwill by relying on the decision of ITAT in assessee s own case for AY 2011-12; without verifying the valuation of goodwill; the method of accounting employed for valuation; the applicabil ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... me were not admitted by Ld. AO since the assessee did not revise its return of income. However, Ld. CIT(A), being an appellate authority, was empowered to do so. Furthermore, this claim of the assessee has been accepted by the Tribunal in AY 2011-12 vide ITA No.2695/Mum/2017 order dated 07/09/2018 which has been followed by Ld. CIT(A). Therefore, this plea of the revenue was to be rejected and we find no infirmity in the action of Ld. CIT(A) in admitting assessee s claim by relying upon the cited decision of the Tribunal in assessee s own case for AY 2011-12. 6. Having said so, we find that assessee s new claim arises out of business transfer agreement dated 17/11/2009 and this was the first year of claim which would have consequential i ..... X X X X Extracts X X X X X X X X Extracts X X X X
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