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TMI Blog2013 (1) TMI 828X X X X Extracts X X X X X X X X Extracts X X X X ..... ed revenue emanates from the order of CIT (Appeals)-V, New Delhi dated 11.09.2012 for the Assessment Year 2007-08. 2. The assessee is carrying out business of manufacturing, distribution and marketing telephone instruments for landline. The assessment was completed at ₹ 63,89,37,240/- against the returned income of ₹ 63,14,39,130/-. 3. The only issue involved in the appeal is del ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t within the meaning of section 32 of the Income-tax Act, 1961 and the depreciation is admissible. The Hon'ble Apex Court has considered the following question and answered as under :- Question No.[b] : Whether goodwill is an asset within the meaning of Section 32 of the Income Tax Act, 1961, and whether depreciation on' goodwill' is allowable under the said Section? ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... hould be considered as goodwill arising on amalgamation. It was claimed that the extra consideration was paid towards the reputation which the Amalgamating Company was enjoying in order to retain its existing clientele. 8. The Assessing Officer held that goodwill was not an asset falling under Explanation 3 to Section 32(1) of the Income Tax Act, 1961 [' Act', for short]. 9. We quote ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... fall under the expression 'any other business or commercial right of a similar nature'. The principle of ejusdem generis would strictly apply while interpreting the said expression which finds place in Explanation 3(b). In the circumstances, we are of the view that 'Goodwill' is an asset under Explanation 3(b) to Section 32(1) of the Act . 5. After hearing both sides a ..... X X X X Extracts X X X X X X X X Extracts X X X X
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