DIVERSEY INDIA P. LTD ( EARLIER KANOWN AS JOHNSON DIVERSEY INIDA P.LTD), MUMBAI V. DCIT RG 10(1), MUMBAI

ITA 1741/MUM/2011

• Counselvise Citation: [2014] 140 COUNSELVISE.COM (IT) 75906 (ITAT-MUMBAI)
• Duration Of Justice: 3 year(s) 12 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 14-03-2014
• Appeal Filed By: Assessee
• Order Result: Partly Allowed
• Bench Allotted: J
• Next Hearing Date: 11-03-2014
• Assessment Year: 2004-2005
• Appeal Filed On: 03-03-2011
• Result in Favour of: Partly Allowed
• Court: TRIBUNAL
• Department Lawyers: S D SRIVASTAVA
• Keywords: Depreciation

Judgement Text

, IN THE INCOME TAX APPELLATE TRIBUNAL J B ENCH, MUMBAI , , ! '#$ , % & BEFORE SHRI VIJAY PALO RAO AND SHRI N.K. BILLAIY A, AM ./ I.T.A. NO.1741/MUM/2011 ( ' ' ' ' / ASSESSMENT YEAR :2004-05 M/S. DIVERSEY INDIA PVT. LTD., (EARLIER KNOWN AS JOHNSON DIVERSEY INDIA PVT. LTD.), 501, 5 TH FLOOR, ACKRUTI CENTRE POINT, MIDC CENTRAL ROAD, ANDHERI (E), MUMBAI-400 093 / VS. THE DCIT, RANGE 10(1), AAYAKAR BHAVAN, MUMBAI-400 020 ( % ./ ) ./ PAN/GIR NO. : AAACJ 9744R ( (* / APPELLANT ) .. ( +,(* / RESPONDENT ) (* - / APPELLANT BY: SHRI NIRAJ SHETH +,(* . - / RESPONDENT BY: SHRI S.D. SRIVASTAVA . /0% / DATE OF HEARING :11.03.2014 12' . /0% / DATE OF PRONOUNCEMENT :14 .03.2014 3 / O R D E R PER N.K. BILLAIYA, AM: THIS APPEAL BY THE ASSESSEE IS PREFERRED AGAINST T HE ORDER OF THE LD. CIT(A)-21, MUMBAI DT.16.12.2010 PERTAINING TO A.Y. 2004-05. ITA NO. 1741/M/2011 2 2. THE ASSESSEE HAS RAISED TWO SUBSTANTIVE GROUNDS OF APPEAL. WITH GROUND NO.1, THE ASSESSEE HAS CHALLENGED THE REOPEN ING OF A CONCLUDED ASSESSMENT AND WITH GROUND NO. 2, THE ASSESSEE HAS CONTESTED THE DISALLOWANCE OF DEPRECIATION ON GOODWILL. 3. AT THE VERY OUTSET, THE LD. COUNSEL FOR THE ASSE SSEE SUBMITTED THAT THE ISSUE RELATING TO THE DEPRECIATION OF GOODWILL IS WELL SETTLED IN FAVOUR OF THE ASSESSEE BY THE DECISION OF THE HONBLE SUPR EME COURT IN THE CASE OF CIT VS SMIF SECURITIES LTD. 348 ITR 302. 4. THE LD. DEPARTMENTAL REPRESENTATIVE FAIRLY CONCE DED TO THIS. 5. WE HAVE CAREFULLY PERUSED THE ORDERS OF THE LOWE R AUTHORITIES. WE HAVE ALSO THE BENEFIT OF THE ORDER OF THE TRIBUNAL IN ASSESSEES OWN CASE FOR A.Y. 2003-04 IN ITA NO. 3050/DEL/2007. WE FIND FORCE IN THE CONTENTION OF THE LD. COUNSEL. THE HONBLE SUPREME COURT IN THE CASE OF SMIF SECURITIES (SUPRA) HAS HELD THAT GOODWILL IS A N ASSET ELIGIBLE FOR DEPRECIATION. THE SAME VIEW WAS FOLLOWED BY THE TR IBUNAL IN ASSESSEES OWN CASE IN ITA NO. 3050/DEL/07 AND AS NO DISTINGU ISHING FACTS/DECISION HAVE BEEN BROUGHT BEFORE US BY THE LD. DR , RESPE CTFULLY FOLLOWING THE DECISION OF THE HONBLE SUPREME COURT IN THE CASE O F SMIF SECURITIES (SUPRA) AND THE DECISION OF THE TRIBUNAL IN ASSESSE ES OWN CASE (SUPRA), THE CLAIM OF DEPRECIATION IS ALLOWED. THE AO IS DI RECTED ACCORDINGLY. 6. AS WE HAVE ALLOWED THE DEPRECIATION ON GOODWILL, WE DO NOT FIND IT NECESSARY TO ADJUDICATE GROUND NO. 1 RELATING TO TH E REOPENING OF A CONCLUDED ASSESSMENT. ITA NO. 1741/M/2011 3 7. IN THE RESULT, THE APPEAL FILED BY THE ASSESSEE IS PARTLY ALLOWED. ORDER PRONOUNCED IN THE OPEN COURT ON 14.3.2014 3 . 2' % 4 5 6 14.3.2014 2 . 7 SD/- SD/- (VIJAY PAL RAO ) (N.K. BILLAIYA) /JUDICIAL MEMBER % / ACCOUNTANT MEMBER MUMBAI; 5 DATED 14.3.2014 . . ./ RJ , SR. PS 3 . +/ 8'/ 3 . +/ 8'/ 3 . +/ 8'/ 3 . +/ 8'/ / COPY OF THE ORDER FORWARDED TO : 1. (* / THE APPELLANT 2. +,(* / THE RESPONDENT. 3. 9 ( ) / THE CIT(A)- 4. 9 / CIT 5. :7 +/ , , / DR, ITAT, MUMBAI 6. 7; < / GUARD FILE. 3 3 3 3 / BY ORDER, ,/ +/ //TRUE COPY// = == = / > > > > (DY./ASSTT. REGISTRAR) , / ITAT, MUMBAI