On mergers, company ‘ACL’ transferred an edible oil brand to assessee-company for a consideration of certain amount.. As per scheme, said consideration was required to be discharged by assessee in form of issuance of shares. Since assessee acquired edible oil brand for consideration, such cost of acquisition was accordingly recorded as cost of brand in books of account of assessee and depreciation thereon was claimed as per section 32(1)(ii).  Assessing Officer held that no edible oil brand was shown in books of account of demerged company and that value of edible oil brands before merger was NIL ,therefore, referring to provisions of section 2(19AA) read with Explanations thereon, Assessing Officer  held that claim of depreciation by assessee was not as per provisions of law and disallowed.On appeal the Tribunal held that   since book value of edible oil brand in books of transferor company on date of merger was NIL, any subsequent change in its value had to be ignored. Order of Assessing Officer is affirmed. (AY. 2007-08)