9911796707
TMI Blog2019 (12) TMI 1631X X X X Extracts X X X X X X X X Extracts X X X X ..... r Assessment Year 2015-16. 2. The first issue relates to disallowance of Rs. 1,36,00,477/- on account of depreciation on goodwill arising on demerger of Adani Energy Ltd. from appellant on the ground that since as per order of Hon'ble Gujarat High Court dated 09.12.2009, appointed date of demerger is 01.01.2007, depreciation on goodwill ought to have been claimed from appointed date i.e. A.Y. 2007-08 and not from effective date i.e. A.Y. 2010-11. The Ld. Assessing Officer may be directed to allow full depreciation on goodwill amounting to Rs. 2,35,25,149/- as claimed in return of income as the prayer made by the assessee. 3. At the time of the hearing of the instant appeal the Ld. AR submitted before us that the issue is squarely covered ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... assessee company took place in A.Y. 2010-11 and goodwill was recognised in assessee's books of account in A.Y. 2010-11. Therefore, depreciation cannot be claimed on the same from A.Y. 2007-08 when the asset itself was created in A.Y. 2010-11. The AO has not accepted the explanation of the assessee. He was of the view that Hon'ble High Court of Gujarat has approved the scheme of demerger and order appointed date as 01.01.2007. Therefore, the claim of depreciation on goodwill to the amount of Rs. 1,81,33,969/- was disallowed and added to the total income of the assessee. 8. Aggrieved assessee has filed before Ld. CIT(A). The Ld. CIT(A) has dismissed the appeal of the assessee. 9. During the course of appellate proceeding before us the Ld. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... f page no.33 to the assessment order passed under s. 143(3) of the Act concerning AY 2012-13 and submitted that the controversy has arisen because the scheme of the demerger was sanctioned by the order of the Hon'ble Gujarat High Court vide its order dated 09.12.2009 w.e.f . the appointed date of 01.01.2007 as mentioned in the draft scheme of demerger. The sanction was accorded by the Hon'ble High Court in FY 2009-10 i.e. AY 2010-11. The assessee claimed depreciation on the goodwill arising on the demerger in the AY 2010-11 as the order was received in FY 2009-10 relevant to AY 2010-11, the AO however complied depreciation on goodwill generated as a result of the demerger (Rs. 33.98 Crore) w.e. f . FY 2006-07 i .e. AY 2007-08 and consequent ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the hon'ble Gujarat High Court on December 9, 2009 while the appointed date was fixed at 01.01.2007 as per the draft scheme of demerger. As a result of demerger, the assessee company has paid certain excess consideration to the demerged company over and above the assets acquired. Such excess consideration amounting to Rs. 33,98,90,680/ - was treated in the nature of goodwill by the assessee as a capital right . The assessee claimed depreciation thereon for the first time in AY 2010-11 being the year in which the order of the Hon'ble Gujarat High Court was received. Consequently, the depreciation of Rs. 4,24,86,335/ - (being 12.5% of the value of goodwill and demerger of Rs. 33.98 Crore) was claimed in AY 2010-11. In the course of scrutiny ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... such depreciation on goodwill in this year. It is the case of the assessee by way of additional ground that the eligibility of depreciation on goodwill is not in dispute. The AO has simply disputed the quantification of eligible depreciation spanning over various financial years on the ground that depreciation is eligible from the appointed date as sanctioned by the Hon'ble Gujarat High Court . Thus, on account of such reworking, the assessee has presented a new claim towards depreciation on goodwill in the impugned AY 2009-10 on the ground that al l the relevant facts are available on record which are duly admi t ted by the Revenue. Therefore, the assessee cannot be deprived of the eligible depreciation as computed by the AO himself concer ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... itional grounds. The relevant facts are available on 21.6 In so far as the merits of the claim made in additional ground is concerned, we observe that where the AO has readjusted the quantum of depreciation in the subsequent assessment year, the assessee is within its legitimate rights to be granted depreciation in AY 2009-10 as per the figures worked by the AO himself . We do not see any perceptible reason for not admitting such claim of the assessee. We also find bonafides in the plea of the assessee for raising new claim on account of depreciation by way of additional ground at this belated stage. The order for the AY 2012-13 was passed on 29.03.2015. By virtue of this order, the assessee came to know about the revision in the claim of ..... X X X X Extracts X X X X X X X X Extracts X X X X
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