Case summary, Income Tax

Depreciation on goodwill

Case: American Express Services India Ltd vs Dy. CIT, Delhi ITAT

Case Outcome: Assessee


  • During the course of the assessment proceedings, the Assessing Officer had disallowed depreciation claimed by the Assessee on goodwill.

Key Points

  • 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

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