9911796707
TMI Blog2013 (2) TMI 865X X X X Extracts X X X X X X X X Extracts X X X X ..... 9,892/- made u/s 43B of the IT Act on account of Local Area Development Tax (LADT) which was relating to A.Y. 1997-98, 2000-01, 2001-02 2002-03. The AO had treated the payment of LADT as provisional payment for which liability was not crystallized. 2. The Ld.CIT(A) has erred in facts and in law in deleting the disallowance of local sales tax amounting to ₹ 1.26 crores pertaining to Jan-1999 to Mar-2002. Although the demand was provisional and liability was not crystallized. 3. At the time of hearing before us, it is stated by the learned CITDR that during the course of assessment proceedings, it was found by the Assessing Officer that during the year under consideration, the assessee made the payment of ₹ 21,59,892 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... other provision of this Act, a deduction otherwise allowable under this Act in respect of [(a) any sum payable by the assessee by way of tax, duty, cess or fee, by whatever name called, under any law for the time being in force, or] (b) any sum payable by the assessee as an employer by way of contribution to any provident fund or superannuation fund or gratuity fund or any other fund for the welfare of employees, [or] [(c) any sum referred to in clause (ii) of sub-section (1) of section 36,] [or] [(d) any sum payable by the assessee as interest on any loan or borrowing from any public financial institution [or a State financial corporation or a State industrial investment corporation], in accordance with the terms ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... elevant whether the liability is pertaining to the earlier year or of the year under appeal. Even in respect of liability in respect of earlier year, the payment would be allowed in the year in which the amount is actually paid. In our opinion, merely because the assessee has disputed its liability before the Tribunal or the Court would also not be relevant. The liability has been raised against the assessee by the authorities nominated under Local Area Development Tax Act and also Sales Tax Act. The assessee has made the payment of such liability during the accounting year relevant to the assessment year under consideration, though under protest. Therefore, on these facts, provision of Section 43B would be squarely applicable and liability ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 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 : In the present case, the assessee had claimed deduction of ₹ 54,85,430/- as depreciation on goodwill. In the course of hearing, the explanation regarding origin of such goodwill was given as under: In accordance with Scheme of Amalgamation of YSN Shares Securities (P) Ltd with Smifs Securities Ltd. (duly sanctioned by Hon ble High Courts of Bombay and Calcutta) with retrospective effect from 1st April, 1998, assets and liabilities of YSN Shares Securities (P) Ltd. were transferred to and vest in the company. In the process goodwill ha ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 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. Respectfully following the judgment of Hon'ble Supreme Court, we do not find any merit in these appeals. These are dismissed. 9. Since the ITAT in assessee s own case for AY 2008-09 and 200910 while agreeing with the CIT(A) has held that the assessee is entitled to depreciation on goodwill, respectfully following the same, we allow the assessee s cross-objection and direct the Assessing Officer to allow the depreciation on goodwill. ITA No.1033/Del/2011 :- 10. In this ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
