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Issues Involved:
The appeal concerns the deletion of disallowance of depreciation on Goodwill amounting to Rs. 67,66,083 for the assessment year 2008-09. Summary: The Appellate Tribunal ITAT Ahmedabad heard the appeal filed by the Revenue against the order of the CIT(A)-XI, Ahmedabad for the assessment year 2008-09. The assessee, a company engaged in computer education, software development, sales, and exports, had declared a loss of Rs. 80,89,561 in its return of income. The assessment was framed u/s 143(3) of the Act, resulting in a total loss of Rs. 12,67,420. The main issue revolved around the claim of depreciation on Goodwill. The assessee contended that the issue had been decided in its favor for the assessment year 2007-08 by the ITAT, Ahmedabad "A" Bench, citing a relevant Supreme Court decision. The Revenue, however, relied on the AO's order disallowing the depreciation on Goodwill. The Tribunal noted that the assessee had claimed depreciation on Goodwill, which the AO disallowed as Goodwill was not specified as an intangible asset for depreciation u/s 32. The Tribunal referred to a similar case where depreciation on software was allowed as it was considered an intangible asset. Relying on precedent, the Tribunal upheld the CIT(A)'s decision to allow depreciation on Goodwill amounting to Rs. 90,21,444. The Tribunal dismissed the Revenue's appeal, stating that there was no reason to interfere with the CIT(A)'s order. In conclusion, the Tribunal upheld the CIT(A)'s decision to allow depreciation on Goodwill, dismissing the Revenue's appeal.
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