2015 (10) TMI 1613

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..... assessee.
Shri N.S. Saini and Shri Rajpal Yadav, JJ. For The Assessee : Shri Sunil H. Talati, A.R. For The Revenue : Shri Nimesh Yadav, Sr. D.R ORDER PER : RAJPAL YADAV, JUDICIAL MEMBER:- The assessee is in appeal before us against the order of Ld. Commissioner of Income Tax(A) dated 23rd August, 2011 passed for Assessment Year 2006-07. 2. The solitary grievance of the assessee is that Ld. Commissioner of Income Tax(A) has erred in confirming the disallowance of depreciation on goodwill. 3. The brief facts of the case are that assessee has filed its return of income on 23-12-2006 declaring total income of ₹ 5,39,660/-. An assessment order was passed u/s. 143(3) on 22-12-2008 determining total income at ₹ 90,90,889/-. .....

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..... nt was that "goodwill" is not in the nature of the assets as defined u/s. 32(1)(ii) of the IT Act. His second objection was that the asset in question, i.e., goodwill was not in existences when the assessee company had taken over the erstwhile firm. He has also placed reliance on Vyomit Shares, Stocks & Investments P. Ltd. Vs. DCIT, 106, ITD 408 (Mum). 7. On the other hand, from the side of the respondent assessee, learned AR, Mr. Sunil Toloti appeared and placed reliance on SMIFS Securities, 348 ITR 302 (SC), B. Raveendran Pillai Vs. CIT, 332 ITR 531 (2011) (Ker) and CIT Vs. Hindustan Coca Cola Beverages (P) Ltd. (Delhi), 331 ITR 192 (2011). 8. Facts of the case have revealed that the assessee had taken over the business of a partnersh .....

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..... mean - (a) tangible assets, being buildings, machinery, plant or furniture; (b)intangible assets, being know-how, patents, copyrights, trade-marks, licences, franchises or any other business or commercial rights of similar nature:" Explanation 3 states that the expression"asset" shall mean an intangible asset, being know-how, patents, copyrights, trade marks, licences, franchises or any other business or commercial rights of similar nature. A reading the words "any other business or commercial rights of similar nature" in clause (b) of Explanation 3 indicates that goodwill would fall under the expression "any other business or commercial right of a similar nature:. The principle of ejusdem generic would strictly apply while interpreti .....

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