MANJUSHREE TECHNOPACK LIMITED ,BANGALORE vs. PR. COMMISSIONER OF INCOME TAX, BENGALURU-2, BENGALURU

ITA 1282/BANG/2025Status: DisposedITAT Bangalore15 June 2026AY 2020-218 pages
AI SummaryAllowed

What did the Tribunal hold?

The Tribunal held that the PCIT erred in treating the slump sale as an amalgamation and that depreciation on goodwill is allowable in such cases. The Tribunal also found that the business acquisition expenses were allowable as revenue expenditure.

What were the facts?

The assessee claimed depreciation on goodwill arising from a slump sale acquisition of a business. The PCIT invoked revisionary powers under Section 263, holding the assessment order erroneous and prejudicial to revenue for allowing depreciation on goodwill and business acquisition expenses.

What were the issues?

Whether depreciation on goodwill acquired through a slump sale is allowable, and whether business acquisition expenses are revenue or capital in nature.

Which sections of the Income-tax Act were involved?

Section 263,Section 32,Section 43(6),Section 37(1)

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, ‘B’ BENCH : BANGALORE

Before: SHRI PRASHANT MAHARISHI, VICE – & SHRI KESHAV DUBEY

PER PRASHANT MAHARISHI, VICE – PRESIDENT

1.

ITA No.1282/Bang/2025 is filed by Manjushree Technopack Limited [the assessee/appellant] against the revisionary order passed u/s. 263 of the Income Tax Act, 1961 [the Act] by the Principal Commissioner of Income Tax, Bengaluru-2 [ld. PCIT] for the AY 2020-21 dated 31.3.2025 wherein it is held that the assessment order passed u/s 143(3) r.w.s. 144B of the Act dated 28.9.2022 is erroneous and prejudicial to the interests of the revenue and therefore the assessment order was set aside for the purpose of making fresh assessment where the ld. AO is directe

The order continues below.

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