Appeal details
Counselvise Citation
[2013] 120 COUNSELVISE.COM (IT) 3396 (ITAT-MUMBAI)
Assessee PAN
Bench
Appeal Number
Duration Of Justice
1 year(s) 11 month(s) 10 day(s)
Appellant
Respondent
Appeal Type
Income Tax Appeal
Pronouncement Date
17-05-2013
Appeal Filed By
Assessee
Order Result
Allowed
Bench Allotted
A
Next Hearing Date
28-02-2013
Assessment Year
2008-2009
Appeal Filed On
07-06-2011
Judgement Text
IN THE INCOME TAX APPELLATE TRIBUNAL A BENCH, MUM BAI . . , , ! ' BEFORE SHRI B. R. MITTAL, J. M. AND SHRI SANJAY AR ORA, A. M. ./ I.T.A. NO. 4590/MUM/2011 ( #$ #$ #$ #$ %$ %$ %$ %$ / ASSESSMENT YEAR: 2008-09) LINK INTIME (INDIA) PRIVATE LIMITED (FORMERLY KNOWN AS INTIME SPECTRUM REGISTRY LIMITED) C 13, PANNALAL SILK MILLS COMPOUND, L.B.S. MARG, BHANDUP (W), MUMBAI-400 078 # # # # / VS. ASST. CIT, 10(3) AAYAKAR BHAVAN, M. K. ROAD, MUMBAI - 400 020 & ! ./ ' ./ PAN/GIR NO. AAACI 4998 N ( &( / APPELLANT ) : ( )*&( / RESPONDENT ) &( + / APPELLANT BY : NONE )*&( , + / RESPONDENT BY : SHRI MANOJ KUMAR # , -.! / DATE OF HEARING : 28.02.2013 /% , -.! / DATE OF PRONOUNCEMENT : 17.05.2013 0 / O R D E R PER SANJAY ARORA, A. M.: THIS IS AN APPEAL BY THE ASSESSEE DIRECTED AGAINST THE ORDER BY THE COMMISSIONER OF INCOME TAX (APPEALS)-22, MUMBAI (CIT(A) FOR SH ORT) DATED 16.03.2011, DISMISSING THE ASSESSEES APPEAL CONTESTING ITS ASSESSMENT U/S .143(3)(II) OF THE INCOME TAX ACT, 1961 (THE ACT HEREINAFTER) FOR THE ASSESSMENT YEAR (A. Y.) 2008-09 VIDE ORDER DATED 18.11.2010. 2 ITA NO.4590/MUM/2011 (A.Y. 2008-09) LINK INTIME (INDIA) PRIVATE LIMITED VS. ASST. CIT 2. THE APPEAL RAISES A SINGLE ISSUE, I.E., THE ALLO WABILITY OR OTHERWISE IN LAW OF THE DEPRECIATION ON GOODWILL, CLAIMED BY THE ASSESSEE FOR THE RELEVANT YEAR IN THE SUM OF RS.2,04,761/-, HAVING BEEN SINCE CONFIRMED FOR DISA LLOWANCE BY THE LD.CIT(A). AT THE VERY OUTSET, IT WAS OBSERVED BY THE BENCH THAT THE ISSUE UNDER REFERENCE STANDS COVERED IN FAVOUR OF THE ASSESSEE, INASMUCH AS DEPRECIATION ON THE SAID ACCOUNT STANDS ALLOWED TO IT FOR THE IMMEDIATELY PRECEDING YEAR, I.E., A.Y. 2007 -08 BY THE TRIBUNAL VIDE ITS ORDER DATED 28.03.2011 (IN ITA NO.2705/MUM/2010/COPY ON R ECORD). THE TRIBUNAL, AFTER TAKING NOTE OF THE DIVERGENT VIEWS EXPRESSED IN THE MATTER BY DIFFERENT APPELLATE AUTHORITIES, FINALLY ALLOWED THE ASSESSEES CLAIM, FOLLOWING THE DECISION BY THE HONBLE DELHI HIGH COURT IN THE CASE OF CIT VS. HINDUSTAN COCO COLA BEVERAGES (P.) LTD. [2011] 331 ITR 192 (DEL.), REPRODUCING THE RELEVANT PART THEREOF A T PARA 6.2 OF ITS ORDER. AS SUCH, THE MATTER OUGHT TO BE CONSIDERED AS COVERED IN THE ASS ESSEES FAVOUR BY THE TRIBUNAL IN ITS OWN CASE. THE LD. DR COULD NOT REBUT THESE OBSERVAT IONS BY THE BENCH MADE WITH REFERENCE TO THE MATERIAL ON RECORD. 3. WE HAVE HEARD THE PARTY BEFORE US, AND PERUSED T HE MATERIAL ON RECORD. THE ISSUE UNDER REFERENCE CONCERNS THE CLAIM OF THE DEPRECIAT ION U/S.32 ON GOODWILL, WHICH THE ASSESSEE CLAIMS TO BE AN INTANGIBLE ASSET, EXIGIBLE FOR DEPRECATION U/S.32 READ WITH RULE 5 OF THE INCOME TAX RULES, 1962. THE REVENUES STAND, ON THE OTHER HAND, IS THAT THE SAME IS ONLY A COMPENSATION PAID FOR ACQUIRING BUSINESS AND THE EXISTING CLIENTELE, I.E., FOR THE EXPANSION OF BUSINESS AND, HENCE, CANNOT BE EQUATED WITH COMMERCIAL RIGHTS OR INTANGIBLE PROPERTY. THE TRIBUNAL, IN THE ASSESSEES CASE FOR THE IMMEDIATELY PRECEDING YEAR, AFTER AN EXAMINATION OF THE FACTS, CONSIDERED THE SAME TO BE IN THE NATURE OF BUSINESS OR COMMERCIAL RIGHTS, ELIGIBLE FOR DEPRECATION U/S. 32 (1), VIDE ITS ORDER SUPRA. THE FACTS AND CIRCUMSTANCES OF THE CASE BEING THE SAME, WITH IN F ACT THE DEPRECIATION BEING CLAIMED ON THE SAME ASSET, AS ALSO THE LAW IN THE MATTER, WE SEE NO REASON NOT TO FOLLOW THE SAME VIEW AS EXPRESSED BY THE TRIBUNAL IN THE ASSESSEES OWN CASE FOR THE IMMEDIATELY PRECEDING YEAR. AS SUCH, RESPECTFULLY FOLLOWING THE SAME, WE, REVERSING THE DECISION BY 3 ITA NO.4590/MUM/2011 (A.Y. 2008-09) LINK INTIME (INDIA) PRIVATE LIMITED VS. ASST. CIT THE REVENUE, DIRECT THE ALLOWANCE OF DEPRECATION ON GOODWILL, I.E., AT RS.2,04,761/-, AS CLAIMED BY THE ASSESSEE. WE DECIDE ACCORDINGLY. 4. IN THE RESULT, THE ASSESSEES APPEAL IS ALLOWED. 1 -2 #$1- , 3- , - 45 ORDER PRONOUNCED IN THE OPEN COURT ON 17 TH MAY, 2013 0 , /% ! 6#2 , 7 SD/- SD/- (B. R. MITTAL) (SANJAY ARORA) / JUDICIAL MEMBER ! / ACCOUNTANT MEMBER MUMBAI; 6# DATED : 17.05.2013 . # . ./RROSHANI , SR. PS 0 0 0 0 , ,, , )-9 )-9 )-9 )-9 : 9%- : 9%- : 9%- : 9%- / COPY OF THE ORDER FORWARDED TO : 1. &( / THE APPELLANT 2. )*&( / THE RESPONDENT. 3. ; ( ) / THE CIT(A) 4. ; / CIT CONCERNED 5. 9<7 )-# , , / DR, ITAT, MUMBAI 6. 7=$ > / GUARD FILE 0# 0# 0# 0# / BY ORDER, ? ?? ? / 4 4 4 4 (DY./ASSTT. REGISTRAR) , / ITAT, MUMBAI
