TMI Blog2021 (4) TMI 1201X X X X Extracts X X X X X X X X Extracts X X X X ..... he opening written down value of Non compete fees, Distribution of net work rights and Customer list. Depreciation o goodwill - The Hon ble Supreme Court in Smifs Securities Ltd [ 2012 (8) TMI 713 - SUPREME COURT] has allowed depreciation on goodwill. Respectfully following the same, we direct to allow depreciation on Goodwill also. The impugned order is overturned pro tanto resulting into grant of depreciation on opening written down value of the intangible assets. Addition to the Intangible asset of Non compete fees and claimed depreciation thereon also - AR submitted that the assessee, while entering into original agreement with CRIL, agreed for certain more payment in future years on the basis of a formula. The said amount of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... reement dated 15.12.2011 for a total consideration of ₹ 11.80 crore including payment towards Intangible assets of ₹ 11.51 crores and Tangibles assets amounting to ₹ 29 lac. The assessee claimed depreciation of ₹ 2,01,68,047/- for the year under consideration in respect of such Intangible assets with opening written down value as on 01.04.2013 as increased by an addition of ₹ 1 crore made during the year. The Assessing Officer noticed the break-up of ₹ 11.51 crore: Non compete fees of ₹ 11,09,00,000/-; Goodwill of ₹ 44,10,000/-; Distribution net work rights of ₹ 5.50 crore; and Customer list of ₹ 4.17 crore. Addition of ₹ 1 crore made during the year was in Non compete fees. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the proceedings for the assessment year 2012-13, he disallowed such depreciation. Similar course was followed in the succeeding year as well. The instant assessment year is third year in line. Against the disallowance of depreciation for the immediately two preceding years i.e. 2012-13 and 2013-14, the assessee approached the Tribunal. Vide order dated 17.02.2020 in ITA Nos.974 975/PUN/2017, a copy of which has been placed on record, the Tribunal allowed depreciation on Intangible assets of Non compete fees, Distribution net work rights and Customer list (depreciation on Goodwill was suo motu allowed by the AO). The authorities below have relied on their respective orders for the earlier years, which have been adjudicated by the Tribunal. ..... X X X X Extracts X X X X X X X X Extracts X X X X
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