Assessing Officer disallowed the depreciation on  goodwill that was created as a result of amalgamation. On appeal the  Commissioner (Appeals) held that goodwill had come to be created by virtue of merger in terms of scheme approved by Court and thus, depreciation on goodwill to extent was correctly claimed by assessee.   Tribunal affirmed the order of the CIT(A).  Revenue contended that provisions of section 49(1)(e) would apply and cost of acquisition of goodwill was to be considered nil as per section 55(2). Dismissing the appeal of the Revenue the Court held section 47 in express terms excludes transfer of capital assets in terms of scheme of amalgamation and scheme of amalgamation is sanctioned is accomplished by operations of law as opposed to an act of parties. On facts  the  goodwill being  an intangible asset on which depreciation is rigtly allowed. Followed, CIT v. Smifs Securities Ltd. [2012] 210 Taxman 428/348 ITR 302 (SC)