TRENT LIMITED ,MUMBAI vs. DEPUTY COMMISSIONER OF INCOME TAX 2(3)(1), MUMBAI

ITA 5165/MUM/2025Status: DisposedITAT Mumbai05 February 2026AY 2018-1915 pages
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What did the Tribunal hold?

The Tribunal held that the excess consideration in a slump sale, exceeding the value of identifiable assets, represents purchased goodwill. This goodwill constitutes an intangible asset eligible for depreciation under Section 32(1) of the Act, as the Finance Act, 2021 amendment is not applicable to the year under appeal.

What were the facts?

The assessee company acquired a business segment via a slump sale and claimed depreciation on the resultant goodwill, calculated as the excess consideration over identifiable assets. The Assessing Officer and CIT(A) disallowed this claim, viewing goodwill as a residual figure without specific cost.

What were the issues?

Whether depreciation is allowable on goodwill arising from a slump sale, when treated as a composite bundle of commercial rights and valued as a residual amount.

Which sections of the Income-tax Act were involved?

Section 32(1)(ii),Section 142(1),Section 2(11),Section 32(1),Section 2(42C),Section 143(3),Section 144B,Section 270A

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Income Tax Appellate Tribunal, “E” BENCH MUMBAI

Before: SHRI ANIKESH BANERJEE & SHRI MAKARAND VASANT MAHADEOKAR

For Appellant: Shri Nikhil Tiwari, Ld. AR
For Respondent: Shri Ritesh Misra, Ld. DR
Hearing: 28.01.2026Pronounced: 05.02.2026

PER MAKARAND VASANT MAHADEOKAR, AM: This appeal is filed by the assessee against the order passed by the Commissioner of Income-tax (Appeals), National Faceless Appeal Centre, Delhi [hereinafter referred to as “CIT(A)”] under section 250 of the Income-tax Act, 1961[hereinafter referred to as "the Act"], dated 30.06.2025, for the assessment year 2018-19, arising out of the assessment order passed under section 143(3) read with section 144B of the Act dated 09.08.2021. Facts of the Case

2.

The assessee is a company engaged in the business of retailing of readymade garments, accessories and household items. The return of income for the assessment year under consideration was

The order continues below.

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