NETSCOUT SYSTEMS INDUSTRIAL PRIVATE LIMITED,MUMBAI vs. DCIT- CIRCLE 1(3)(1), MUMBAI, MUMBAI

ITA 3582/MUM/2026Status: DisposedITAT Mumbai08 September 2026AY 2016-1711 pages
AI SummaryAllowed

What did the Tribunal hold?

The Tribunal held that goodwill arising from a slump sale, even without specific valuation in the agreement, is an eligible intangible asset for depreciation. The disallowance of depreciation and consequential enhancement of book profit were deleted.

What were the facts?

The assessee acquired a business on a slump sale basis and claimed depreciation on goodwill arising from the excess of liabilities over assets. The Assessing Officer and CIT(A) disallowed this claim, treating the goodwill as a mere book entry.

What were the issues?

Whether goodwill arising from a slump sale is eligible for depreciation, and whether TDS credit can be allowed in an earlier year if income is offered in that year.

Which sections of the Income-tax Act were involved?

Section 32(1)(ii),Section 115JB,Section 199,Section 198

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, “B” BENCH, MUMBAI

Before: SHRI SAKTIJIT DEY & SHRI G. M. DOSS

Pronounced: 08.09.2026

PER G.M. DOSS, ACCOUNTANT MEMBER :

This appeal by the assessee is directed against the order dated 20.01.2026 passed by the learned Commissioner of Income Tax (Appeals)/National Faceless Appeal Centre, Delhi ["CIT(A)-NFAC"] under section 250 of the Income-tax Act, 1961 ["the Act"], arising out of the assessment order dated 22.12.2018 passed under section 143(3) of the Act for Assessment Year 2016-17, whereby the claim of depreciation of Rs. 54,84,341/- on goodwill has been disallowed, the resul

The order continues below.

Read the full judgment

A free account opens 10 full judgments a month. Re-reading one you have already opened does not count again.

Create a free accountSign in

See plans and prices

The summary, the parties, the sections and the citations above are open to everyone and always will be. Only the text of the order and the PDF are metered.

More judgments on Section 32(1)(ii)

All 565 judgments and leading authorities on Section 32(1)(ii) →

Recent GST High Court judgments

Search GST case law →