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TMI Blog2024 (10) TMI 933X X X X Extracts X X X X X X X X Extracts X X X X ..... ssets acquired have been valued at Rs. 12,37,450/-, there is no infirmity in treating the balance amount as pan intangible asset, and the decision of the CIT(A) to allow deprecation on such intangibles cannot be faulted. Decided in favour of assessee. TP Adjustment - addition made on account of ALP with related enterprises - Revenue s grievance regarding the calculation of ALP is confined to an associated enterprise eSys Singapore (the Foreign AE), as one of the tested parties - HELD THAT:- It is premised on the basis that the Foreign AE which is admittedly one of the associated enterprises was treated as one of the tested parties. According to the Revenue, it was not apposite to use the said entity as a tested party, considering that the f ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... o. 3514/Del/2010) in respect of AYs 2004-05 and 2005-06. The present appeal relates to the Revenue s appeal in respect of AY 2004-05. 2. The controversy in the present appeal is twofold. The first relates to the disallowance of the amount of Rs. 34,63,450/- on account of goodwill that was written off by the assessee during the relevant previous year. And, the second is regarding the addition made on account of arm s length price (hereafter ALP) with related enterprises. The Revenue s grievance regarding the calculation of ALP is confined to an associated enterprise eSys Singapore (hereafter the Foreign AE), as one of the tested parties. 3. In view of the above, this Court had framed the following questions for consideration: (i) Whether the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... to be addressed is with regard to the disallowance of Rs. 34,63,450/-, which was written off by the assessee as goodwill. The undisputed facts are that the assessee had paid a sum of Rs. 47,00,000/- to M/s Nebula Technologies Pvt. Ltd. (hereafter Nebula) for purchasing certain assets, which were located in different places in India. The said assets were valued at Rs. 12,37,450/- and there is no dispute regarding this valuation of the said assets. Consequently, the assessee had treated the balance amount of Rs. 34,63,450/- paid to Nebula as goodwill. The assessee claimed that it had not acquired any benefit against the said amount and had, accordingly, written off the said goodwill in its books of accounts. The Assessing Officer (hereafter t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ever, there is no dispute that the assessee had paid a sum of Rs. 47,00,000/- for acquisition of assets of Nebula as claimed. There is also no suggestion that the said amount was paid for any other consideration or purpose. It would, thus, follow that the entire amount of Rs. 47,00,000/- is required to be treated as expenditure for acquisition of assets or attendant to the said acquisition. Since the assets acquired have been valued at Rs. 12,37,450/-, there is no infirmity in treating the balance amount as pan intangible asset, and the decision of the CIT(A) to allow deprecation on such intangibles cannot be faulted. 10. In view of the above, the second question as framed, is answered against the Revenue and in favour of the assessee. 11. ..... X X X X Extracts X X X X X X X X Extracts X X X X
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