Assessee-company claimed depreciation on goodwill created due to amalgamation of assessee and company MROPL. Assessing Officer disallowed the same. CIT(A) allowed the claim of depreciation. On appeal, the Tribunal held that the NCLT-approved scheme of amalgamation, wherein the revenue had not objected to the valuation report regarding the difference between net acquisition of assets and total consideration, was recorded as goodwill by the assessee at that point in time through the valuation report.\u00a0 Following the decision in Smifs Securities Ltd. v. CIT (2012) 210 Taxman 428 \/ 348 ITR 302 (SC), the Tribunal held that in case of amalgamation, if consideration paid by the amalgamated company to the amalgamating company is more than net assets acquired by it, then the differential amount shall be treated as goodwill and amalgamated company shall be eligible for claim of depreciation on such goodwill. Order of CIT(A) was affirmed.(AY. 2017-18, 2018-19)<\/p>\n","protected":false},"excerpt":{"rendered":"
S. 32: Depreciation-Amalgamation-Goodwill-If consideration paid by the amalgamated company to the amalgamating company is more than the net assets acquired by it, then the differential amount shall be treated as goodwill, and the amalgamated company shall be eligible for a claim of depreciation on such goodwill. [S.2(IB),43(1)]<\/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_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":"","jetpack_post_was_ever_published":false},"categories":[21],"tags":[],"class_list":["post-60852","post","type-post","status-publish","format-standard","hentry","category-income-tax-act"],"acf":[],"jetpack_featured_media_url":"","jetpack_shortlink":"https:\/\/wp.me\/p9S2Rw-fPu","jetpack-related-posts":[],"jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts\/60852","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=60852"}],"version-history":[{"count":1,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts\/60852\/revisions"}],"predecessor-version":[{"id":60853,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts\/60852\/revisions\/60853"}],"wp:attachment":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/media?parent=60852"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/categories?post=60852"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/tags?post=60852"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}