9911796707
TMI Blog2021 (4) TMI 1201X X X X Extracts X X X X X X X X Extracts X X X X ..... ee is directed against the order dated 29.09.2017 passed by the ld. CIT(Appeal), Pune-1 in relation to the assessment year 2014-15. 2. The assessee has filed modified grounds of appeal. The only issue raised through the original and modified grounds is the confirmation of disallowance of depreciation amounting to Rs. 2,01,68,047/- on Intangible assets. 3. Succinctly, the facts of the case are th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... on of Rs. 1 crore made during the year was in Non compete fees. The Assessing Officer did not find any difficulty in allowing depreciation on Goodwill by relying upon the judgment of the Hon'ble Supreme Court in the case of CIT Vs. Smifs Securities Ltd. (2012) 348 ITR 302 (SC). He, however, held that other items: Non compete fees, Distribution net work rights and Customer list included by the asse ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... iness in the previous year relevant to the assessment year 2012-13. Out of the total consideration of Rs. 11.80 crore, the assessee paid Rs. 11.51 crore towards Non compete fees, Goodwill, Distribution net work rights and Customers list. When the issue of granting depreciation came up for consideration before the Assessing Officer for the first time in the proceedings for the assessment year 2012- ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... fully following the precedent, we hold the assessee entitled to depreciation u/s.32(1)(ii) of the Act on the opening written down value of Non compete fees, Distribution of net work rights and Customer list. 5. We have observed that albeit the Assessing Officer, in principle, held the assessee to be entitled to depreciation on goodwill, but inadvertently made disallowance of depreciation on Goodw ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s stated to be pursuant to such formulae. However, no calculation in accordance with the formula has been placed on record. In these circumstances, we set aside the impugned order on this score and remit the matter to the file of the Assessing Officer for examining true nature of Rs. 1 crore. If the same is found out to be correct in accordance with the terms of the agreement as to the quantum and ..... X X X X Extracts X X X X X X X X Extracts X X X X
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