Allowing the appeal, that the assessee was the transferee company which did not have any goodwill in the books of account prior to amalgamation and the assessee acquired the goodwill post amalgamation. Goodwill arising on amalgamation was a capital asset eligible for depreciation. The consideration paid by the amalgamated company over and above the net assets of the amalgamating company should be considered as goodwill arising on amalgamation. The depreciation claimed by the assessee on goodwill acquired deserved to be allowed in accordance with law. The Assessing Officer was to compute depreciation in accordance with the principles laid down in Smifs Securities Ltd. (AY. 2015-16)