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TMI Blog2017 (9) TMI 1650X X X X Extracts X X X X X X X X Extracts X X X X ..... IFS Securities Limited case [2012 (8) TMI 713 - SUPREME COURT] - ITA No. 291/Ahd/2015 - - - Dated:- 22-9-2017 - Pramod Kumar AM and Rajpal Yadav JM SN Soparkar Parin Shah for the appellant VK Singh for the respondent O R D E R Per Pramod Kumar, AM: 1. This is an appeal filed by the assessee appellant and is directed against the order dated 08.12.2014 passed by the CIT(A)-8, Ahmedabad in the matter of assessment under Section 143(3) of the Income-tax Act, 1961 for the Assessment Year 2011-12. 2. Ground no. 1 is general and it does not call for any specific adjudication. It is dismissed as such. 3. In ground no. 2, the assessee-appellant has raised the following grievance:- The Learned Commissioner ( ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... .12.2016 of the Co-ordinate Bench of this Tribunal in assessee s own case for the assessment year 2007-08 wherein the Tribunal has, inter alia, observed as follows:- 3. We have given a thoughtful consideration to the contentions of the ld. Senior Counsel. We find that in the case of Smifs Securities Ltd. (supra), the Hon ble Supreme Court was, interalia, seized with the following question of law. 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. Answer: 6. In the present case, the assessee had claimed deduction of ₹ 54,85,430/- as depreciation on goodwill. In the course of hea ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the expression 'asset shall mean an intangible asset, being know-how, patents, copyrights, trademarks, 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 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 'Goodwill1 is an asset under Explanation 3(b) to Section 32(1) of the Act. One more aspect needs to be highlighted. In the pre ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Hon ble Supreme Court shows that the impugned issue is no more res integra. Therefore, respectfully following the afore-stated decision of the Hon ble Supreme Court, the A.O. is directed to allow the claim of depreciation on goodwill acquired by the assessee duly supported by Valuation Report. 4. We see no reason to take any other view of the matter than the view so taken by the co-ordinate bench. Respectfully following the same, we uphold the grievance of the assessee and direct the Assessing Officer to allow the claim of depreciation on goodwill acquired by the assessee in the light of aforesaid decision of co-ordinate bench. 5. In the result, the appeal is allowed for statistical purposes. Pronounced in the open court to ..... X X X X Extracts X X X X X X X X Extracts X X X X
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