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TMI Blog2011 (7) TMI 322X X X X Extracts X X X X X X X X Extracts X X X X ..... rom the total purchase consideration for the purpose of grant of depreciation allowance to the assessee - Decided in favour of assessee. - 989 of 2004 - - - Dated:- 18-7-2011 - MRS.JUSTICE CHITRA VENKATARAMAN, MR.JUSTICE M.JAICHANDREN, JJ. For Appellant: Mr.Arun Kurein Joseph For Respondent: Mr.P.J.Rishkesh JUDGMENT CHITRA VENKATARAMAN, J. The Revenue is on appeal raising the following questions of law: "1. Whether in the facts and circumstances of the case, the Tribunal was right in holding that the company purchased by the assessee had no goodwill as it was a loss making company? 2. Whether in the facts and circumstances of the case, the Tribunal was right in holding that there is no goodwill attri ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... hough the Transferor Company was established five years prior to the date of sale, throughout it was a loss making unit and the Transferor Company had no goodwill at all except the trade name that the company possessed for the cement marketed as "Coromandel cement. The Commissioner of Income Tax pointed out that the addition under the head of goodwill was really without any basis and hence, the same had to be deleted. 4. Aggrieved by the same, the Revenue went on appeal to the Income Tax Appellate Tribunal. Referring to the findings of the Commissioner of Income Tax Appeals and on going through the records the Tribunal pointed out that the purchase of the cement unit from M/s.Coromandel Fertilizers Limited did not automatically generate ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d counsel for the petitioner pointed out specific provision Section 55(2)(a) to include goodwill of a business or a trade mark in the cost of acquisition and hence, pleaded for setting aside the order of the Tribunal. 7. A reading of the order of the Tribunal and the Commissioner of Income Tax (Appeals) show that the assessee purchased loss making cement plant from M/s. Coramandel Fertilizers Limited, for a sale consideration of Rs.105.30 crores. Evidently, the cement plant purchased was making loss eversince its commencement of the business, hence, no value was assigned in respect of the brand name as well as for goodwill. The Commissioner of Income Tax (Appeals) pointed out that the assessee company acquired the brand name along with ..... X X X X Extracts X X X X X X X X Extracts X X X X
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