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TMI Blog2020 (9) TMI 429X X X X Extracts X X X X X X X X Extracts X X X X ..... e of Rs. 6.09 crores. Secondly, the revenue is aggrieved by the deletion of disallowance of marked to market foreign exchange loss of Rs. 4,10,404/-. 3. At the very outset, the ld. counsel for the assessee stated that both the issues have been decided by the Tribunal in assessee's own case in A.Y 2010-11 in ITA no. 1761/DEL/2015. Copy of the order was supplied. 4. Per contra the ld. DR could not bring any distinguishing decision in favour of the revenue. 5. We have carefully considered the orders of the authorities below qua the quarrel. We find force in the contention of the ld. counsel for the assessee. Both the issues in the quarrel are settled in favour of the assessee and against the revenue by the Tribunal in assessee's own case in ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nt of slum sale, vide agreement dated 20.06.2008, sum of Rs. 34 crores was paid to Mitsubishi and the difference between sale value and book value of the assets was booked and depreciation was claimed, though during the course of assessment proceedings. The Ld. AR for the assessee points out that the Hon'ble Supreme Court in Smifs Securities Ltd.: (2012) 348 ITR 302 has held that goodwill was intangible asset and depreciation is to be allowed on it. Our attention was drawn to the order of the CIT(A) in Assessment Year 2011-12 and the Remand Report of the Assessing Officer which are placed at pages 25 to 29 of the Paperbook. The assessee further pointed out that the Hon'ble Delhi High Court in Triune Energy Services (P.) Ltd. vs DCIT [2016] ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... is dated 20.06.2008 and no depreciation on goodwill was claimed in the return of income. The case of the assessee is that the said depreciation on goodwill is allowable in the hands of the assessee. On the other hand, the case of the Revenue is that the ITA No. 1761/Del/2015 Assessment Year: 2010-11 10 payment of goodwill itself is not defined in the agreement and there is no valuation report from any Competent Authorities so the said claim of depreciation on goodwill is not allowable. We are of the view that the claim can be considered in the hands of the assessee subject to verification of the factual aspects in the hands of the assessee. The Assessing Officer was of the view that the claim was not allowable because of the decision of Hon ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ed it to be notional and also speculative in nature. The issue stands covered by the decision of Hon'ble Delhi High Court in CIT vs Industrial Finance Corporation of India Ltd. (supra); further Revenue's SLP(C).CC No.10349 of 2020 against this decision was dismissed by Hon'ble Supreme Court vide order dated 09.07.2020. The Hon'ble Bombay High Court in Pr.CIT vs International Gold Company Ltd. Tax Appeal 1827 of 2016 allowed mark to market loss on revaluation of forward exchange contracts and also held that CBDT Instruction No.3 of 2010 dated 23.03.2010 cannot be applied. Following the same parity of reasoning, we reverse the orders of Assessing Officer in this regard and direct the Assessing Officer to delete the disallowance made on accoun ..... X X X X Extracts X X X X X X X X Extracts X X X X
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