| The Tax Publishers2019 TaxPub(DT) 4706 (Del-Trib) INCOME TAX ACT, 1961
Section 32(1)
Since assessee purchased business and had shown value of goodwill right from the acquisition onwards, in balance sheet and books of account and since there was no objection from revenue with respect to value of the goodwill until relevant assessment year 2005-06, goodwill denoted an intangible asset and depreciation was allowable thereon.
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Depreciation - Allowability - Goodwill, i.e., consideration paid over and above value of net assets acquired vide slump sale agreement -
Assessee company engaged in online and other electronic media and other businesses, vide slump sale agreement, acquired a going concern, business of on-line and other electronic media through internet and other net works including databases, and on-line magazines, for Rs. 1 crore. The balance part of Rs. 61,76,080- over and above the book value of net tangible assets, was allocated by transferee as goodwill in balance sheet. The claim of assessee for depreciation on goodwill was turned down by. AO.Held: Since assessee purchased business and had shown value of goodwill right from the acquisition onwards, in balance sheet and books of account and since there was no objection from revenue with respect to value of the goodwill until relevant assessment year 2005-06, goodwill denoted an intangible asset and depreciation was allowable thereon.
Supprted:CIT v. Smifs Securities Ltd. (2012) 348 ITR 302 (SC) : 2012 TaxPub(DT) 2430 (SC), Areva T&D India Ltd. v. Dy. CIT (2012) 345 ITR 421 (Del) : 2012 TaxPub(DT) 2033 (Del-HC) and CIT v. Jai Parabolic Spring Ltd. (2008) 306 ITR 42 (Del) : 2008 TaxPub(DT) 1881 (Del-HC).
REFERRED :
FAVOUR : In assessee's favour.
A.Y. : 2005-06
IN THE ITAT, DELHI 'B' BENCH
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