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TMI Blog2025 (3) TMI 1079X X X X Extracts X X X X X X X X Extracts X X X X ..... peals for the Assessment Years (hereinafter, the 'AY') 2015-16 and 2016-17 filed by the assessee are directed against orders dated 08.10.2018 and 16.10.2019 respectively passed by the Commissioner of Income Tax (Appeals)-1, Gurgaon [hereinafter, the 'CIT(A)']. 3. The core issue raised in these appeals is in respect of the disallowance of depreciation on goodwill acquired/created as a result of amalgamation. Besides this issue, the assessee has also raised issues of the disallowance of Rs. 41,08,304/- under section 40A(3) of the Act in AY 2015-16 and the chargeability of interest under section 234A, 234B, 234C and 234D of Income Tax Act, 1961 (hereinafter 'the Act') in AY 2016-17. However, no ground other than the disallowance of depreciati ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the relevant years. Aggrieved, the assessee filed appeal before the CIT(A), who dismissed both appeals on the reasoning that the cost of acquisition/creation of goodwill was NIL. 4.1 The Ld. CIT(A) also held that the issue in dispute in these appeals is that whether the depreciation is allowable on goodwill acquired/created pursuant to the scheme of amalgamation. The Ld. CIT(A), placing emphasis on the definition of written down value under section 43(6)(c) read with the Explanation 2 to Section 32(1) of the Act, held that the actual cost of the goodwill in the hands of the assessee was NIL as there was no goodwill in the books of account of the amalgamating company; i.e. North Star Apartments Pvt. Ltd. thus, the Ld. CIT(A) held that there ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ispute in the said case, whereas there was no dispute in the valuation of goodwill in the present cases. The Ld. AR further submitted that the amalgamating company's books of accounts had already accounted for the value of goodwill in its books of accounts before amalgamating into the United Breweries L td., whereas it was not so in the present cases. Thus, it was argued that the case of United Breweries Ltd. was distinguishable on facts as held in the cases of Keva Fragrances P. ltd.; I TA No. 334/Mum/2020 dated 02.08.2021 (Mum. ITAT), Mylan Laboratories Ltd. and Anr., (2020) 180 I TD 558 (Hyd. ITAT), Altimetrik India (P) Ltd. in IT(TP)A No. 2511 /Bang./2019 dated 03.02.2022 (Bang. I TAT). 5. The Ld. CI T-DR, placing emphasis on various p ..... X X X X Extracts X X X X X X X X Extracts X X X X
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