| |
| The Tax Publishers2021 TaxPub(DT) 1617 (Del-Trib) INCOME TAX ACT, 1961
Section 32(1)(ii)
'Goodwill' falls under the expression any other business or commercial right of a similar nature as per section 32(1)(ii) and thus eligible for dereciation.
|
Depreciation - Allowability - Goodwill -
Assessee purchased 'Eneous business segment' of M/s. Tide Water Oil Company (India) Ltd. under business transfer agreement, dated 24-9-2014 for a total consideration of Rs. 106 crore and generated goodwill. Question arose for consideration was whether the goodwill raised by assessee in the books of account over and above the value of the net asset obtained out of such agreement was eligible for depreciation under section 32(1)(ii). Held: Goodwill would fall under the expression 'any other business or commercial right of a similar nature'. The principle of ejusdem generis would strictly apply while interpreting the said expression which finds place in Explanation 3(b) to section 32(1). Accordingly, goodwill is an asset eligible for depreciation under section 32(1)(ii).
Relied:DHL Logistics Private Limited v. Dy. CIT (ITAT Mumbai), Areva T& D India Ltd. & Ors. v. Dy. CIT (2012) 345 ITR 421 (Del) : 2012 TaxPub(DT) 2033 (Del-HC), CIT v. B.C. Srinivasa Setty (1981) 128 ITR 294 (SC) : 1981 TaxPub(DT) 902 (SC) and CIT v. Smifs Securities (2012) 348 ITR 302 (SC) : 2012 TaxPub(DT) 2430 (SC)
REFERRED :
FAVOUR : In assessee's favour.
A.Y. :
 SUBSCRIBE FOR FULL CONTENT
|