M/S. BODAL CHEMICALS LTD.,AHMEDABAD vs. THE DY.CIT, CIRCLE-1, AHMEDABAD

ITA 318/AHD/2022Status: DisposedITAT Ahmedabad31 July 2025AY 2009-10Bench: Ms. SUCHITRA KAMBLE (Judicial Member), SHRI NARENDRA PRASAD SINHA (Accountant Member)71 pages
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What did the Tribunal hold?

The Tribunal held that the disallowance of depreciation on goodwill was to be treated identically to the grounds raised in the Revenue's appeal for AY 2006-07. Consequently, the grounds related to the disallowance of depreciation on goodwill were allowed.

What were the facts?

The case involves cross-appeals by the Revenue and the assessee concerning disallowance of depreciation on goodwill acquired through amalgamation. The Assessing Officer disallowed depreciation, arguing the goodwill had nil cost in the amalgamating company's books. The CIT(A) upheld some disallowances and deleted others.

What were the issues?

The primary issue was whether depreciation on goodwill acquired through amalgamation was allowable, considering the cost of acquisition and the provisions of Section 43(1) and Section 32(1) of the Income Tax Act.

Which sections of the Income-tax Act were involved?

Section 43(1),Section 32(1),Section 115JB,Section 153A

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Income Tax Appellate Tribunal, “A” BENCH, AHMEDABAD

Before: Ms. SUCHITRA KAMBLE & SHRI NARENDRA PRASAD SINHA

For Appellant: Shri S.S. Nagar, AR
For Respondent: Shri Kamlesh Makwana, CIT-DR and Shri B.P. Srivastava, Sr.DR
Hearing: 20.02.2025Pronounced: 31/07/2025

आदेश आदेश

PER BENCH These are cross-appeals by the Revenue and the assessee. In all there are nine appeals – by the R

The order continues below.

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