M/S. BARBEQUE NATION HOSPITALITY LTD,BENGALURU vs. DEPUTY COMMISSIONER OF INCOME TAX, CENTRAL CIRCLE-2(2) , BENGALURU

ITA 25/BANG/2024Status: DisposedITAT Bangalore31 October 2025AY 2017-1847 pages
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What did the Tribunal hold?

The Tribunal held that additions made in Section 153A proceedings without incriminating material are unsustainable, especially for unabated assessment years. It also noted that depreciation on goodwill was allowed in the initial assessment year and not disturbed by the Pr.CIT, suggesting it should be allowed for subsequent years.

What were the facts?

The assessee company is appealing against the CIT(A)'s order concerning additions made in assessment years 2013-14 to 2018-19. The primary dispute revolves around the disallowance of depreciation on goodwill and other intangible assets acquired through a slump sale, and the validity of assessments made under Section 153A following a search.

What were the issues?

The key issues are whether additions under Section 153A are valid without incriminating material for unabated years, and whether depreciation on goodwill and intangible assets is allowable when initially accepted and not disturbed by higher authorities.

Which sections of the Income-tax Act were involved?

Section 153A,Section 143(3),Section 250,Section 132,Section 263

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Income Tax Appellate Tribunal, C BENCH : BANGALORE

Before: SHRI. LAXMI PRASAD SAHU & SHRI. KESHAV DUBEY

For Appellant: Shri. A. Shankar, Sr. Advocate
For Respondent: Shri. K. M. Mahesh, CIT(DR)(ITAT), Bangalore
Hearing: 18.09.2025Pronounced: 31.10.2025

These appeals are filed by the assessee against the Order passed by the CIT(A) on the following grounds:

Grounds raised for Assessment Year 2013-14:

1.

The order of the learned Commissioner of Income Tax (Appeals) passed under section 250 of the Income Tax Act, 1961 (hereinafter referred to as “Act”) dated 31.10.2023 for Assessment Year 2013- 14 in so far as it is against the appellant is opposed to law, weight of evidence, natural justice, probabilities, facts and circumstances of the Appellant's case.

2.

The Appellant denies itself liable to be assessed on a total i

The order continues below.

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