The Dy. CIT, Circle-4(1)(2), Ahmedabad V. M/s. Zydus Wellness Ltd, Ahmedabad

ITA 80/AHD/2016

• Counselvise Citation: [2018] 126 COUNSELVISE.COM (IT) 6150 (ITAT-AHMEDABAD)
• Duration Of Justice: 2 year(s) 20 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 01-02-2018
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: Not Allotted
• Assessment Year: 2012-2013
• Appeal Filed On: 11-01-2016
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: JIGAR M PATEL
• Keywords: Depreciation; Cost of acquisition

Judgement Text

, IN THE INCOME TAX APPELLATE TRIBUNAL, C BENCH, AHMEDABAD BEFORE SHRI RAJPAL YADAV, JUDICIAL MEMBER AND SHRI AMARJIT SINGH, ACCOUNTANT MEMBER ./ ITA.NO.80/AHD/2016 / ASSTT. YEAR: 2012-2013 DCIT, CIR.4(1)(2) AHMEDABAD. VS Z Y DUS WELLNESS LTD. ZYDUS TOWER SATELLITE CROSS ROAD AHMEDABAD. PAN : AAAACC 7740 G ! / (APPELLANT) '# ! / (RESPONDENT) ASSESSEE BY : SHRI PRASOON KABRA, SR.DR REVENUE BY : SHRI JIGAR M. PATEL, AR / DATE OF HEARING : 15/01/2018 / DATE OF PRONOUNCEMENT: 01 /02/2018 $%/ O R D E R PER RAJPAL YADAV, JUDICIAL MEMBER: REVENUE IS IN APPEAL BEFORE THE TRIBUNAL AGAINST TH E ORDER OF THE LD.CIT(A)-8, AHMEDABAD DATED 9.11.2015 PASSED FOR T HE ASSTT.YEAR 2012-13. 2. THOUGH REVENUE HAS TAKEN FOUR GROUNDS OF APPEAL, BUT ITS GRIEVANCE REVOLVES AROUND A SINGLE ISSUE VIZ. THE LD.CIT(A) H AS ERRED IN ALLOWING DEPRECIATION OF RS4,04,44,578/- ON GOODWILL. 3. BRIEF FACTS OF THE CASE ARE THAT THE ASSESSEE HA S FILED ITS RETURN OF INCOME ON 19.9.2012 DECLARING TOTAL INCOME AT RS.32,27,18, 930/-. ITS CASE WAS SELECTED FOR SCRUTINY ASSESSMENT AND NOTICE UNDER S ECTION 143(2) WAS ISSUED ITA NO.80/AHD/2016 2 AND SERVED UPON THE ASSESSEE. ON SCRUTINY OF ACCOUN TS IT REVEALED TO LD.AO THAT THE ASSESSEE HAS CLAIMED DEPRECIATION OF RS.4, 04,44,578/- ON GOODWILL OF RS.16,17,78,313/-. THE LD.AO HAS DISALLOWED DEPREC IATION ON THE GROUND THAT COST OF ACQUISITION OF GOODWILL IS NIL AND THEREFOR E IT DOES NOT ADMISSIBLE TO THE ASSESSEE. ON APPEAL, THE LD.CIT(A) HAS ALLOWED DEPRECIATION FOLLOWING ORDERS OF HIS PREDECESSOR IN EARLIER YEAR. 4. BEFORE US, THE LD.COUNSEL FOR THE ASSESSEE HAS P LACED ON RECORD COPY OF THE HONBLE GUJARAT HIGH COURT ORDER IN THE CASE OF ASSESSEE REPORTED IN PR.CIT VS. ZYDUS WELLNESS LTD. , 87 TXMANN.COM 82 ( GUJ) RENDERED IN TAX APPEAL NO.779 OF 2017 DATED 3.10.2017. HONBLE HIG H COURT UPHELD ORDER OF THE ITAT VIDE WHICH DEPRECIATION WAS GRANTED TO THE ASSESSEE ON GOODWILL. SIMILARLY , IN THE ASSTT.YEAR 2011-12, TRIBUNAL HAS DISMISSED APPEAL OF THE REVENUE WHEREBY THE TRIBUNAL HAS UPHELD GRANT OF DE PRECIATION ON GOODWILL AT THE END OF LD.CIT(A) VIDE ORDER DATED 8.6.2015. CONSIDERING JUDGMENT OF THE HONBLE GUJARAT HIGH COURT AND ORDER OF THE TRI BUNAL IN THE CASE OF ASSESSEE IN DIFFERENT ASSESSMENT YEARS, WE ARE OF T HE VIEW THAT THE ASSESSEE IS ENTITLED FOR DEPRECIATION ON GOODWILL. THE LD.CIT( A) HAS EXAMINED ALL THESE FACTS, AND THEREAFTER, ALLOWED THE DEPRECIATION. THE LD.CIT(A) HAS RIGHTLY APPRECIATED THE CONTROVERSY AND NO INTERFERENCE IS CALLED FOR IN HIS ORDER. ACCORDINGLY, THE APPEAL OF THE REVENUE IS DISMISSED . 5. IN THE RESULT, THE APPEAL OF THE REVENUE IS DISM ISSED. ORDER PRONOUNCED IN THE COURT ON 1 ST FEBRUARY, 2018 AT AHMEDABAD. SD/- SD/- (AMARJIT SINGH) ACCOUNTANT MEMBER (RAJPAL YADAV) JUDICIAL MEMBER AHMEDABAD; DATED 01 /02/2018