GTPL CRAZY NETWORK,AHMEDABAD vs. THE ACIT, CIRCLE-1(2), AHMEDABAD

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ITA 86/AHD/2020Status: DisposedITAT Ahmedabad19 October 2022AY 2016-177 pages

In favour of the assessee: the assessee's appeal was allowed. From the AI summary of this appeal.

AI SummaryAllowed

What did the Tribunal hold?

The Tribunal held that goodwill is an intangible asset eligible for depreciation under Section 32(1) of the Income Tax Act, following the Supreme Court's decision in CIT vs. Smifs Securities Ltd. The Tribunal found that the assessee had demonstrated the valuation of goodwill based on market practice and subscriber numbers.

What were the facts?

The assessee, a partnership firm engaged in cable television networking, claimed depreciation on goodwill amounting to Rs. 68,75,000/-. The Assessing Officer disallowed this claim, stating that the goodwill had zero value in the proprietary concern's books and was acquired after the partnership formation.

What were the issues?

Whether depreciation on goodwill, an intangible asset, is allowable and how its valuation should be determined in the context of a partnership firm acquiring a business.

Which sections of the Income-tax Act were involved?

Section 32(1),Section 43(6)

AI-generated summary — verify with the full judgment below

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Income Tax Appellate Tribunal, “SMC” BENCH, AHMEDABAD

Before: MS. SUCHITRA KAMBLE

For Respondent: Shri Rakesh Jha, Sr. DR
Hearing: 12.09.2022Pronounced: 19.10.2022

आदेश क� ��त�ल�प अ�े�षत/Copy of the Order forwarded to : 1. अपीलाथ� / The Appellant 2. ��यथ� / The Respondent. 3. संबं�धत आयकर आयु�त / Concerned CIT 4. आयकर आयु�त(अपील) / The CIT(A)- 5. �वभागीय ��त�न�ध, आयकर अपील�य अ�धकरण, अहमदाबाद / DR, ITAT, Ahmedabad 6. गाड� फाईल / Guard file. आदेशानुसार/ BY ORDER,

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