DY.CIT, CIRCLE-1(1), CHANDIGARH vs. M/S GLAXOSMITHKLINE CONSUMER PVT. LTD., NABHA

ITA 121/CHANDI/2023Status: DisposedITAT Chandigarh16 October 2025AY 2016-17Bench: SHRI RAJPAL YADAV (Vice President), SHRI KRINWANT SAHAY, ACCOUNTANT MEMBER आयकर अपील सं. / ITA No. 121/CHD/2023 निर्धारण वर्ष / Assessment Year : 2016-17 DCIT, M/s Glaxosmithkline Circle 1(I), Consumer Pvt. Ltd., Chandigarh Patiala Road, Vs. Nabha, Punjab स्थायी लेखा सं./PAN NO. AAFCG8415R अपीलार्थी/Appellant प्रत्यर्थी/Respondent ( Hybrid Mode ) निर्धारिती की ओर से /Assessee by : Shri Ajay Vohra, Sr. Advocate with Shri. Neeraj Jain, Advocate, Ms. Somya Jain, CA (Virtual) राजस्व की ओर से / 1 pages
AI SummaryDismissed

What did the Tribunal hold?

The Tribunal upheld the CIT(A)'s decision, finding no reason to interfere with the allowance of depreciation at 100%. Key factors considered were the assets being put to use for more than 180 days and the seller not claiming depreciation on them.

What were the facts?

The Revenue appealed against the CIT(A)'s order allowing depreciation on goodwill at 100% of prescribed rates. The assessee had acquired assets through a slump sale and claimed depreciation on the excess consideration over the Fair Market Value, treating it as goodwill.

What were the issues?

Whether depreciation on goodwill arising from a slump sale can be claimed at 100% of the prescribed rate, and if the conditions for claiming full depreciation were met.

Which sections of the Income-tax Act were involved?

Section 32(1)

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Income Tax Appellate Tribunal, CHANDIGARH BENCH, ‘A’, CHANDIGARH

Before: SHRI RAJPAL YADAV & SHRI KRINWANT SAHAY

For Appellant: Ms. Somya Jain, CA (Virtual)
Hearing: 06.08.2025Pronounced: 16.10.2025

Per Krinwant Sahay, AM:

Appeal in this case has been filed by the Revenue against the order dated 2.1.2023 passed by the Ld. CIT(A) National Faceless Appeal Centre (NFAC), Delhi.

2 121-Chd-2023 M/s Glaxosmithkline Consumer Pvt. Ltd, Nabha

2.

The revised grounds of appeal are as under:

1.

The Ld. CIT(A) has erred on facts and circumstances of the case in allowing the depreciation on goodwill amounting to Rs. 27,30,71,379/- @100% of the pres

The order continues below.

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