Depreciation on goodwill
Case Outcome: Assessee
- During the course of the assessment proceedings, the Assessing Officer had disallowed depreciation claimed by the Assessee on goodwill.
- Reliance was placed on the decision of the Hon’ble Supreme Court in the case of CIT vs. Smifs Securities Ltd., wherein it was concluded that goodwill was an intangible asset as defined under section 32(1)(ii) of the Act, hence, eligible for depreciation.
- Hence, in the present case, depreciation was allowed on goodwill.
- Issue Outcome: In favour of Assessee
If you can’t access links on this page, create a Riverus account. Not only can you access information seamlessly, you get access to the complete legislation and all reported and unreported income tax case laws. Moreover you do not pay to create the account. For premium content, you can make in-app purchases.