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TMI Blog2023 (6) TMI 383X X X X Extracts X X X X X X X X Extracts X X X X ..... i Challa Nagendra Prasad, Judicial Member For the Revenue : Shri B.S. Anand, Sr. DR For the Assessee : Shri KVSR Krishna, CA ORDER PER C.N. PRASAD, J.M. This appeal is filed by the Revenue against the order of the Ld. Commissioner of Income Tax (Appeals)-22, New Delhi dated 29.01.2019 for the AY 2015-16. The Revenue in its appeal raised the following grounds: - 1. Whether on the facts and in the circumstances of the case and in law, the Ld.CIT(A) was justified in allowing depreciation on the Goodwill when the transaction of sale of slump sale to subsidiary company is not regarded as transfer within the meaning of section 47(iv) of the I.T. Act, 1961 and the Discount Cash Flow Method to value the Goodwill was f ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ced that the assessee has acquired business for a consideration of Rs. 19,85,22,900/-. 13. The Id. CIT(A) further found that the assessee has furnished all the details at the assessment stage itself. The Id. CIT(A) was not convinced with the observations of the Assessing Officer that the assessee has over valued the projections for valuation of good will and drawing support from the decision of the Hon'ble Supreme Court in the case of Smifs Securities Ltd 348 ITR 302 and the decision of the Hon ble Jurisdictional High Court in the case of Triune Energy Services Pvt Ltd 237 ITR 230, came to the conclusion that depreciation is an inherent claim under the Act and claim of deprecation by the assessee on goodwill is based on relevant pr ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... erefore, cannot be done with arithmetic precision and such technical and complex problem should be left to the consideration and wisdom of experts in the field of accountancy. 19. Due Diligence Report of the assessee company was provided by Price Waterhouse Cooper, a well known global accounting firm, which shows that the market value of goodwill was acceptable by an independent third party. 20. Interestingly, in its ground of appeal, the Revenue has challenged that transaction of sale of slump sale to subsidiary company is not regarded as transfer within the meaning of Section 47(iv) of the Act. But, we find that in the hands of TIEL, while framing the assessment order dated 26.03.2015 u/s 143(3) of the Act for A.Y 2012-13, the A ..... X X X X Extracts X X X X X X X X Extracts X X X X
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