ARCSERVE SOFTWARE SOLUTIONS PRIVATE LIMITED,TELANGANA vs. DCIT CIRCLE 1(1), DELHI (FORMALLY DCIT, CIRCLE 3(1), DELHI), DELHI

ITA 5137/DEL/2025Status: DisposedITAT Delhi18 September 2026AY 2016-1713 pages
AI SummaryPartly Allowed

What did the Tribunal hold?

The Tribunal held that Section 194-IA is not applicable as no immovable property was acquired, thus upholding the deletion of disallowance under Section 40(a)(ia). It also held that the excess payment constituted goodwill for acquiring a running business and not unexplained expenditure, confirming the deletion of addition under Section 69C.

What were the facts?

The assessee acquired a business division on a slump sale basis and claimed goodwill. The Assessing Officer (AO) disallowed depreciation on goodwill and treated the excess payment as unexplained expenditure. The CIT(A) deleted the disallowance under Section 40(a)(ia) and addition under Section 69C but disallowed depreciation on goodwill.

What were the issues?

Whether depreciation on goodwill is allowable on a slump sale of a business division, and whether the excess payment over net assets constitutes unexplained expenditure.

Which sections of the Income-tax Act were involved?

Section 194-IA,Section 40(a)(ia),Section 69C,Section 32(1)(ii)

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, DELHI “E” BENCHES, NEW DELHI

Before: SHRI MAHAVIR SINGH & SHRI MANISH AGARWAL

Heard together (2 matters)

ITA 5137/DEL/2025
ITA 5230/DEL/2025

Read from the judgment's own cause title. This page is filed under one of them.

PER MANISH AGARWAL, A.M.:

The captioned cross-appeals filed by the assessee and the Revenue against the order dated 19.06.2025 passed by Ld. Commissioner of

The order continues below.

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