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TMI Blog2013 (10) TMI 771X X X X Extracts X X X X X X X X Extracts X X X X ..... mpany which is engaged in the business of manufacturing of automobile parts and non-woven fabrics. The return of income for the year under consideration was filed by it on 25-09-2009 declaring total income of Rs. 1,59,600/- under the normal provisions of the Act and income u/s 115JB of the Income Tax Act, 1961 of Rs. 41,47,960/-. On 1-4-2003, the assessee had `acquired the business of M/s Dhariwal Nonwovens for a total consideration of Rs. 250 lacs. The net asset of the said firm on the date of transfer were to the tune of Rs. 1,30,41,518/-. The difference between the sale consideration and the value of net asset amounting to Rs. 1,19,58,482/- was paid by the assessee towards goodwill and after capitalizing the said amount in the books of a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... aning of section 32 of the Income-tax Act, 1961, and whether depreciation on `goodwill' is allowable under the said section?" The said question has been answered in favour of the assessee. As the facts and circumstances of the instant case are mutatis mutandis similar to those considered and decided by the Hon'ble Supreme Court in the case of Smifs Securities Ltd. (supra), in our considered opinion, the assessee's claim to depreciation cannot be denied. We, therefore, hold that the goodwill is an asset within the meaning of section 32 of the Act and accordingly is eligible for depreciation." 4. As the issue involved in the year under consideration as well as all the material facts relevant thereto are similar, we respectfully follow the de ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rom the bank on fixed deposits have beer treated as taxable and hence the income has not been treated as totally exempt by the A.O. of VWEMCL. The appellant is regularly paying "service charges" to VWEMCL and hence the appellant was required to make TDS on this payment. The appellant's attention was also invited to provisions of section 1 95J under which this payment was to be treated as fees for technical charges since VWEMCL is a company which is providing technical services of treating the effluent of the company, for which it is being paid regularly. The appellant stated that the payment made by it is for standard facility available to all. In view of these facts, I am of the considered opinion that the A.O. has rightly disallowed the s ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... is was accepted by the Assessing Officer while making an assessment under section 143 (3) of the Act in the case of VWEMCL. Such being the case it has to be considered as a standard facility available to each member/industrial undertaking ; VWEMCL is running a treatment plant providing a standard facility and if any work force is involved in maintaining the standard facility it cannot be said that a special skill/knowledge was passed on by individuals to the assessee in lieu of a specific fee collected. Such being the case, we are of the considered opinion that it cannot be considered as a payment in the form of "fee for technical services". In the case of recipient company the Assessing Officer accepted that charges were recovered from the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... vance tax of Rs. 10 lacs paid on 13th June, 2008. 10. We have heard the arguments of both the sides and also perused the relevant material available on record. The ld. counsel for the assessee has submitted that a sum of Rs. 10 lacs was paid by the assessee as advance tax on 13th June, 2008 in State Bank of India, Chembur Branch but the credit for the same could not be availed by the assessee as there was a mistake in mentioning the correct Permanent Account Number by the Bank. He has invited our attention to the letter dated 31-12-2011 issued by the State Bank of India placed at page 81 of his paper book admitting this mistake and urged that the A.O. may be directed to allow the credit for the advance tax of Rs. 10 lacs paid by the assess ..... X X X X Extracts X X X X X X X X Extracts X X X X
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