PRINCIPAL COMMISSIONER OF INCOME TAX 4 vs. ZYDUS WELLNESS LTD

TAXAP/783/2018HC GujaratGJHC24037014201809 July 2018Author: HONOURABLE MR. JUSTICE M.R. SHAH,HONOURABLE MR. JUSTICE A.Y. KOGJE4 pages
AI SummaryDismissed

What did the High Court hold?

The High Court dismissed the appeal filed by the Revenue. The Court noted that a Division Bench of the same High Court had previously dismissed the Revenue's appeal for Assessment Year 2011-12 in Tax Appeal No. 779/2017 vide an order dated October 3, 2017. The Court observed that the present appeal raised a question of law that was squarely covered against the Revenue by the aforesaid decision. Therefore, no substantial question of law arose for consideration in the present appeal. The operative direction was to dismiss the appeal.

What were the facts?

The assessee, Zydus Wellness Ltd, filed its Return of Income for Assessment Year 2012-13. During assessment, it was noted that the assessee claimed depreciation of Rs. 4,04,44,578/- on goodwill valued at Rs. 16,17,78,313/- through a revised return filed on June 20, 2013. This depreciation was not claimed in the original return. The Assessing Officer disallowed this claim. The assessee appealed to the CIT(A), who allowed the appeal. The Revenue then appealed to the ITAT, which, following its earlier decisions for Assessment Years 2009-10, 2010-11, and 2011-12, dismissed the Revenue's appeal and upheld the deletion of the disallowance. The Revenue has now filed a Tax Appeal before the High Court.

What were the issues?

1. Whether the Appellate Tribunal is correct in law and on facts in upholding the decision of the CIT(A) in deleting the disallowance of depreciation of Rs. 4,04,44,578/- on Goodwill of Rs. 16,17,78,313/- (turning on the allowability of depreciation on goodwill). Assessee's Contention: The judgment does not record specific contentions made by the assessee before the High Court. However, the ITAT's decision, which was upheld, implies the assessee argued for the allowability of depreciation on goodwill. Revenue's Contention: The Revenue contended that the ITAT erred in upholding the CIT(A)'s deletion of the disallowance of depreciation on goodwill.

AI-generated summary — verify with the full judgment below

Cited by 20 judgments on BharatTax

See all citing judgments →

Counted from the text of the judgments hosted here. Most recent first.

Cause title — parties, addresses and appearances
C/TAXAP/783/2018 ORDER IN THE HIGH COURT OF GUJARAT AT AHMEDABAD R/TAX APPEAL NO. 783 of 2018 ========================================================== PRINCIPAL COMMISSIONER OF INCOME TAX 4 Versus ZYDUS WELLNESS LTD ========================================================== Appearance: MRS MAUNA M BHATT(174) for the Appellant ========================================================== CORAM: HONOURABLE MR.JUSTICE M.R. SHAH and HONOURABLE MR.JUSTICE A.Y. KOGJE Date : 09/07/2018

ORAL ORDER (PER : HONOURABLE MR.JUSTICE M.R. SHAH)

1.

Feeling aggrieved and dissatisfied by the impugned judgment and order passed by the learned Income Tax Appellate Tribunal “C” Bench, Ahmedabad, dated 01.02.2018, in I.TA. No.80/Ahd/2016, for the Assessment Year 2012-13, the Revenue has preferred the present Tax Appeal with the following proposed question of law: “Whether the Appellate Tribunal is correct in law and on facts in upholding the decision of the CIT(A) in deleting the disallowance of depreciation of Rs.4,04,44,578/- on Goodwill of Rs.16,17,78,313/-” C/TAXAP/783/2018

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.

Recent GST High Court judgments

Search GST case law →