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TMI Blog2021 (8) TMI 1090X X X X Extracts X X X X X X X X Extracts X X X X ..... s that the assessee followed the pooling of interest method in the scheme of amalgamation. Under the pooling of interest method the question of goodwill does not arise. The difference, if any arises between the assets & liabilities which were acquired at the book value and consideration paid by the amalgamated company, is adjusted against the reserve. The fact of following the pooling of interest method by the assessee in the scheme of amalgamation was highlighted by the AO in his order after making a reference to AS 14 and IND AS-103. Likewise the assessee also admitted before the ITAT that the assessee followed pooling of interest method in the scheme of amalgamation and the ITAT has also taken the cognizance of the same in its order. Acc ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... such amalgamation. It was merely mentioned that creation of goodwill was one of the possible alternatives in this scheme. The Hon'ble Court had accepted the scheme with this general provisions. At that stage neither the Hon'ble court conducted any detailed inquiry in to the question of the method which would be followed by the assessee nor was any finding with regard to this fact given by the Hon'ble court. The Assessing Officer also did not have any access to the minds of the assessee as to which scheme would he follow and whether such scheme would involve the creation of goodwill. In the circumstances, the Assessing Officer could not be barred from examining this issue at the stage of assessment when the assessee had claimed ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ept of goodwill in pooling of interest method. 3. Whether in view of the aforesaid facts the order passed by the Hon'ble ITAT is self contradictory and perverse and needs to be set aside." 4. The learned DR in view of the above before us contended that there is a mistake in the order of the ITAT within the meaning of the provisions of section 254(2) of the Act. Thus the order passed by the ITAT should be recalled. 5. On the other hand the learned AR before us submitted that the Hon'ble ITAT has recognized the goodwill and allowed the depreciation after making the reference to the scheme of amalgamation which was approved by the Hon'ble Gujarat High Court. Furthermore, the comment were also invited from the Income Tax Department with ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the face of the record if one has to travel beyond the record to see whether the judgment is correct or not. An error apparent on the face of the record means an error which strikes the eye on merely looking at it and does not need long-drawn-out process of reasoning on points where there may conceivably be two opinions. Such an error should not require any extraneous matter to show its incorrectness. To put it differently, it should be so manifest and clear that no Court would permit it to remain on record. If the view accepted by the Court in the original judgment is one of the possible views, the case cannot be said to be covered by an error apparent on the face of the record. [Para 37] 6.1 In the case on hand, admittedly the AO has di ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t finding of the ITAT is on para 31.7 to 31.9 of the order. It was also recorded that there is no dispute qua the fact of making the payment by way of issuing the shares which is a valid mode of payment as held by the Hon'ble Delhi High Court in case of CIT vs. Mira Exim Ltd reported in 359 ITR 70. Accordingly, the ITAT after considering all these facts have recognized the goodwill in the books of accounts of the assessee. 6.4 However, the Revenue has not pointed out any mistakes with respect to the above finding of the ITAT. Therefore it cannot be said that there is a mistake apparent from record arising from the order of the ITAT. 6.5 With respect to the 2nd allegation that the principles laid down by the Hon'ble Supreme Court in the ca ..... X X X X Extracts X X X X X X X X Extracts X X X X
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