The assessee company is stated to have dealership of Mercedes-Benz and as per the ongoing business strategy, the assessee company acquired the business of going concern which was holding dealership of Mercedes-Benz in Kolkata.  In the process, the excess consideration of RS. 7.50 crores over and above the value of the tangible assets was claimed to have been incurred for acquiring various business and commercial rights categorized under the head ‘goodwill’ in the books of the assessee.  The assessee claimed depreciation on such ‘goodwill’ pegged at RS. 7. 50 crores. In the course of the scrutiny assessment, the AO however denied the claim of such depreciation on ‘goodwill’. The CIT(A) after consideration of relevant facts found the claim of the assessee to be in consonance with law enunciated by way of judicial precedents. An appeal has been filed at the instance of the Revenue against the order of the CIT(A).  The Tribunal held that extra consideration paid for acquisition of assets and the business of the concern represents cost of goodwill.  This being so, the assessee would be entitled in law for claim of depreciation.  (AY.  2013-14)