Assessing Officer disallowed the depreciation on\u00a0 goodwill that was created as a result of amalgamation. On appeal the\u00a0 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.\u00a0\u00a0 Tribunal affirmed the order of the CIT(A).\u00a0 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\u00a0 the\u00a0 goodwill being\u00a0 an intangible asset on which depreciation is rigtly allowed. Followed, CIT\u00a0v.\u00a0Smifs Securities Ltd.\u00a0[2012] 210\u00a0Taxman 428\/348 ITR 302 (SC)\u00a0<\/p>\n","protected":false},"excerpt":{"rendered":"
S. 32 : Depreciation-Goodwill created as a result of Amalgamation-Intangible asset-Order of Tribunal allowing the depreciation is affirmed. [S.47, 49(1)(e), 55(2)] <\/p>\n","protected":false},"author":3,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"jetpack_post_was_ever_published":false,"_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[21],"tags":[],"class_list":["post-39322","post","type-post","status-publish","format-standard","hentry","category-income-tax-act"],"acf":[],"jetpack_featured_media_url":"","jetpack_shortlink":"https:\/\/wp.me\/p9S2Rw-aee","jetpack-related-posts":[],"jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts\/39322","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/users\/3"}],"replies":[{"embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/comments?post=39322"}],"version-history":[{"count":1,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts\/39322\/revisions"}],"predecessor-version":[{"id":39323,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts\/39322\/revisions\/39323"}],"wp:attachment":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/media?parent=39322"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/categories?post=39322"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/tags?post=39322"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}