M/s. Punit Engineering Works, Ahmedabad V. The Income tax Officer,Ward-6(4), Ahmedabad

ITA 492/AHD/2011

• Counselvise Citation: [2014] 120 COUNSELVISE.COM (IT) 6055 (ITAT-AHMEDABAD)
• Duration Of Justice: 3 year(s) 4 month(s) 8 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 27-06-2014
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: D
• Assessment Year: 2007-2008
• Appeal Filed On: 18-02-2011
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: B L YADAV
• Keywords: Depreciation

Judgement Text

, , , , D, IN THE INCOME TAX APPELLATE TRIBUNAL AT AHMEDABAD, D BENCH . .. . . .. . , !' !' !' !', , , , #$ %&'( #$ %&'( #$ %&'( #$ %&'(, , , , )* + ) ' )* + ) ' )* + ) ' )* + ) ' BEFORE S/SHRI G.C. GUPTA, VICE-PRESIDENT AND ANIL CHATURVEDI, ACCOUNTANT MEMBER) ITA NO.492/AHD/2011 [ASSTT.YEAR : 2007-2008] M/S.PUNIT ENGINEERING WORKS PLOT NO.L/4128, PHASE-IV GIDC, VATVA, AHMEDABAD. PAN : AAFFP 9495 D /VS. THE ITO, WARD-6(4) AHMEDABAD. ( (( (-. -. -. -. / APPELLANT) ( (( (/ // /0-. 0-. 0-. 0-. / RESPONDENT) 1& 2 3 )/ ASSESSEE BY : SHRI TUSHAR HEMANI + 2 3 )/ REVENUE BY : SHRI B.L. YADAV, CIT-DR 5 2 &(*/ DATE OF HEARING : 16 TH JUNE, 2014 678 2 &(*/ DATE OF PRONOUNCEMENT : 27-06-2014 )9 / O R D E R PER G.C. GUPTA, VICE-PRESIDENT: THIS APPEAL BY THE ASSESSEE FOR THE ASSESSMENT YEAR 2007-2008 IS DIRECTED AGAINST T HE ORDERS OF THE CIT(A). 2. THE ONLY EFFECTIVE GROUND OF THE APPEAL OF THE A SSESSEE IS AS UNDER: THE LD.CIT(A) HAS ERRED IN LAW AND ON THE FACTS OF THE CASE IN CONFIRMING THE ACTION OF THE LD.AO IN DISALLOWING D EPRECIATION OF ITA NO.492/AHD/2011 -2- RS.1,62,300/- ON INTANGIBLE ASSETS AS HOLDING THAT DEPRECIATING IS NOT ALLOWABLE ON IMPUGNED GOODWILL. 3. THE LEARNED COUNSEL FOR THE ASSESSEE SUBMITTED T HAT THE ISSUE IN THE GROUND OF THE APPEAL OF THE ASSESSEE REGARDING DEPR ECIATION ON GOODWILL IS COVERED IN FAVOUR OF THE ASSESSEE WITH THE DECISION OF HONBLE APEX COURT IN THE CASE OF CIT VS. SMIFS SECURITIES LTD., 348 I TR 302 (SC). THE LEARNED DR COULD NOT CONTROVERT THE SUBMISSIONS OF THE LEARNED COUNSEL FOR THE ASSESSEE. 4. WE HAVE CONSIDERED RIVAL SUBMISSIONS AND HAVE PE RUSED THE ORDERS OF THE AO AND THE CIT(A). WE FIND THAT THE ONLY IS SUE IN THIS APPEAL OF THE ASSESSEE IS REGARDING ALLOWABILITY OF DEPRECIATION ON GOODWILL I.E. INTANGIBLE ASSET IS COVERED IN FAVOUR OF THE ASSESS EE WITH THE DECISION OF THE HONBLE APEX COURT IN CIT VS. SMIFS SECURITIES LTD. (SUPRA), AND ACCORDINGLY, WE HOLD THAT THE ASSESSEE IS ENTITLED TO DEPRECIATION ON GOODWILL AND THE GROUND NO.1 OF THE ASSESSEE IS ALL OWED. 5. IN THE RESULT, APPEAL OF THE ASSESSEE IS ALLOWED . ORDER PRONOUNCED IN OPEN COURT ON THE DATE MENTIONE D HEREINABOVE. SD/- SD/- ( %&'( %&'( %&'( %&'( / ANIL CHATURVEDI) )* + )* + )* + )* + /ACCOUNTANT MEMBER ( . .. . . .. . /G.C. GUPTA) !' !' !' !' /VICE-PRESIDENT C OPY OF THE ORDER FORWARDED TO: 1) : APPELLANT 2) : RESPONDENT 3) : CIT(A) 4) : CIT CONCERNED 5) : DR, ITAT. BY ORDER DR/AR, ITAT, AHMEDABAD