TATA COMMUNICATIONS LTD,MUMBAI vs. DCIT 1(3)(2), MUMBAI

ITA 977/MUM/2016Status: DisposedITAT Mumbai25 September 2026AY 2011-12118 pages
AI SummaryAllowed

What were the facts?

The assessee claimed depreciation on goodwill arising from a slump sale acquisition of a business. The Assessing Officer disallowed this claim, arguing it was not eligible for depreciation. The assessee appealed this decision.

What did the Tribunal hold?

The Tribunal held that goodwill is an intangible asset eligible for depreciation under Section 32(1)(ii) of the Income Tax Act. It followed the Supreme Court's decision in CIT v. Smifs Securities Ltd., stating that goodwill arising from a slump sale falls within the scope of 'any other business or commercial rights of similar nature'.

What were the issues?

Whether goodwill arising from a slump sale acquisition is eligible for depreciation under the Income Tax Act. Whether specific explanations related to amalgamation apply to slump sale transactions for depreciation purposes.

Which sections of the Income-tax Act were involved?

Section 32(1)(ii),Section 43(1),Section 43(6)(c)

AI-generated summary — verify with the full judgment below

Heard together (2 matters)

ITA 830/MUM/2016
ITA 977/MUM/2016

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

आयकर अपीलीय अधिकरण, म ुंबई पीठें, म ुंबई INCOME TAX APPELLATE TRIBUNAL, MUMBAI BENCHES, MUMBAI BENCH: H BEFORE SMT. BEENA PILLAI, JUDICIAL MEMBER AND SHRI JAGADISH, ACCOUNTANT MEMBER ITA 830/MUM/2016 (निर्धारण वर्ा/Assessment Year: 2011-12) DCIT 1(3)(2) TATA COMMUNICATIONS LTD R.NO. 540, 5TH FLOOR, AAYAKAR BHAVNA, M.K.RD,, - VIDESH SANCHAR BHAVAN, Vs. 400020, MAHARASHTRA M.G. RD, FORT, -400001, MAHARASHTRA अपीलधर्थी Appellant प्रत्यर्थी Respondent

PAN of Assessee: AAACV2808C

अपीलधर्थी द्वारा/Appellant represented Shri. Ajay Chandra, CIT DR by: प्रत्यर्थी द्वारा/Respondent represented Shri. J.D Mistri, Sr. Adv. by: ITA 977/MUM/2016 (निर्धारण वर्ा/Assessment Year: 2011-12) TATA COMMUNICATIONS LTD DCIT 1(3)(2) VIDESH SANCHAR BHAVAN, R.NO. 540, AAYAKAR M.G. RD, FORT,, -400001, Vs. BHAVAN, M.K. RD, MAHARASHTRA -400020, MAHARASHTRA अपीलधर्थी Appellant प्रत्यर्थी Respondent

PAN of Assessee: AAACV2808C

अपीलधर्थी द्वारा/Appellant represented Shri. J.D Mistri, Sr. Adv. by: प्रत्यर्थी द्वारा/Respondent represented Shri. Ajay Chandra, CIT DR by: सुनवाई की तारीख / Date of conclusion of hearing: 01-Jul-2026 घोषणा की तारीख / Date of pronouncement: 25/09/2026

ITA 830/MUM/2016 ITA 977/MUM/2016

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