The assessee is  a Pvt Ltd company filed the return of income , declaring nil income . The assessment was reopened on the ground that depreciation was wrongly allowed on the basis of revaluation by the firm . Under a scheme of succession estwhile partnership firm was succeeded in its business by assessee-company .  Before firm was converted into private limited company, partnership firm had revalued its intangible assets using standard valuation methods and same were transferred to assessee . In consideration, assessee allotted shares to partners of erstwhile partnership firm. n Assessee claimed depreciation on such intangible assets.  Same was accepted and an same assessment order was passed.  Thereafter, a reopening notice was issued against assessee on ground that original assets which were added in company at time of succession could not be considered for purposes of depreciation -accordingly, claim for depreciation on intangible assets was disallowed . The Appellate Tribunal has up held the  reassessment and also affirmed the order of the Assessing Officer on  merit  On appeal allowing the claim of the assessee the Court held that  the assessee and erstwhile partnership firm were different entities and there was transfer of intangible assets by partnership firm to assessee for a valuable consideration that was by way of allotment of shares . The  transaction between firm and assessee-company was covered under section 47(xiii) and, therefore, assessee was entitled to depreciation on actual cost incurred by it with reference to intangible assets .  (AY. 2005-06 to 2008-09)