Dismissing the appeal of the revenue the Court held that when a partnership firm was succeeded in its business by a company and there was a transfer of intangible assets by partnership firm to assessee in lieu of shares issued to partners of erstwhile firm, such transaction was covered under section 47(xiii) and, therefore, successor assessee-company was entitled to claim depreciation on actual cost incurred by it with reference to such intangible assets. (AY. 2005-06 to 2008-09)
Dy. CIT v. Padmini Products (P.) Ltd. (2021) 133 taxmmann.com 174 (Karn.)(HC) Editorial : Notice is issued in SLP filed by the revenue ; Dy. CIT v. Padmini Products (P.) Ltd. (2022) 284 Taxman 374 (SC)
S. 32 : Depreciation-Firm succeeded by company-Intangible assets-Successor assessee-company was entitled to claim depreciation on actual cost incurred by it with reference to such intangible assets. [S. 35(2(AB), 47(xiii)]