DEPUTY COMMISSIONER OF INCOME TAX, CHENNAI vs. MAGICK WOODS EXPORTS PRIVATE LIMITED, KANCHEEPURAM

ITA 3377/CHNY/2025Status: DisposedITAT Chennai13 August 2026AY 2018-1912 pages
AI SummaryDismissed

What were the facts?

The assessee claimed depreciation on goodwill arising from an amalgamation. The Revenue disallowed this claim, arguing it was self-generated and its actual cost was nil. The assessee also claimed vendor compliance expenses, which the Assessing Officer disallowed for lack of evidence.

What did the Tribunal hold?

The Tribunal held that depreciation on goodwill arising from amalgamation is allowable, especially when the issue had attained finality in a prior assessment year. The Tribunal also found that the vendor compliance expenses were adequately supported by evidence and were business-related.

What were the issues?

Whether depreciation on goodwill arising from amalgamation is allowable and whether vendor compliance expenses were sufficiently substantiated.

Which sections of the Income-tax Act were involved?

Section 32(1),Section 43(1)

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, ‘A’ BENCH, CHENNAI

Before: SHRI ABY T VARKEY & SHRI S. R. RAGHUNATHA

Hearing: 27.07.2026Pronounced: 13.08.2026

PER S. R. RAGHUNATHA, AM :

This appeal has been preferred by the Revenue against the order of the Learned Commissioner of Income Tax (Appeals), National Faceless Appeal Centre (in short ‘Ld.CIT(A)’), dated 01.09.2025 passed u/s.250 of the Income- tax Act, 1961 (in short ‘the Act’), for the Assessment Year 2018-19 against assessment order passed by the Assessment Unit

The order continues below.

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