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TMI Blog2025 (3) TMI 1079X X X X Extracts X X X X X X X X Extracts X X X X ..... should be NIL as there was no value assigned to the goodwill in the books of account of amalgamating company; i.e. North Star Apartment Pvt. Ltd. Admittedly, the amalgamation has taken place in pursuant of the order dated 07.03.2015 of the Hon'ble Punjab and Haryana High Court.
We are of the considered view that this case is squarely covered by the decision of Eltek SGS Pvt. Ltd.[2023 (8) TMI 681 - DELHI HIGH COURT]. Thus, hold that the claim of depreciation on acquired/created goodwill pursuant to the scheme of amalgamation in AY 2015- 16 and 2016-17 respectively is justified. Decided in favour of assessee. X X X X Extracts X X X X X X X X Extracts X X X X ..... on acquired/created goodwill pursuant to the scheme of amalgamation. In the AY 2015-16, three companies; namely, Sukh Realters Pvt. Ltd., Ma-Ganga Builders & Constructions Pvt. Ltd. and Belisma Buildcon Pvt. Ltd. amalgamated with North Star Apartments Pvt. Ltd. in pursuant of the orders dated 30.09.2014 and 10.11.2014 of the Hon'ble' Punjab and Haryana High Court. Later on, North Star Apartments Pvt. Ltd. amalgamated with the assessee company in pursuant of the order dated 07.03.2015 of the Hon'ble Punjab and Haryana High Court. During the course of amalgamation of North Star Apartments Pvt. Ltd. with the assessee company, goodwill has arisen on account of amalgamation being the difference in value of shares issued over the net book val ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the scheme of amalgamation more than the depreciation allowable to the amalgamating company; i.e. North Star Apartment Pvt. Ltd. While upholding the disallowance of depreciation of goodwill, the Ld. CIT(A) placed reliance on the decision of the ITAT Bangalore in the case of United Breweries Ltd. 76 taxman.com 103. Further, the Ld. CIT(A) held that the cases of Smifs Securities Ltd., (2012) 348 ITR 0302 (SC) and Areva T & D India Ltd. (2012) 345 ITR 0421 (Delhi High Court) were distinguishable on facts and law. 4.2 The Ld. Authorized Representative (hereinafter, the 'AR') contended that his case was squarely covered by the decision of the Hon'ble Delhi High Court in the Case of Eltek SGS Pvt. Ltd. in the ITA No. 475 & 476/2022 (order dated ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ectively. We find merit in the arguments/submissions/contentions of the Ld. AR. In the present cases, there is no dispute on the valuation of acquired/created goodwill pursuant to the scheme of amalgamation in the books of account of the appellant assessee as neither the AO nor the Ld. CIT(A) has ever questioned the valuation of the said goodwill though the Ld. CIT(A) has held that the value of goodwill in the hands of the appellant company should be NIL as there was no value assigned to the goodwill in the books of account of amalgamating company; i.e. North Star Apartment Pvt. Ltd. Admittedly, the amalgamation has taken place in pursuant of the order dated 07.03.2015 of the Hon'ble Punjab and Haryana High Court. We are of the considered v ..... X X X X Extracts X X X X X X X X Extracts X X X X
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