ANSHUL SPECIALTY MOLECULES PVT LTD,MUMBAI vs. DCIT, CIRCLE 1(1)(1), MUMBAI

ITA 7503/MUM/2025Status: DisposedITAT Mumbai22 January 2026AY 2020-21Bench: SHRI AMIT SHUKLA (Judicial Member), SHRI MAKARAND VASANT MAHADEOKAR (Accountant Member)1 pages
AI SummaryAllowed

What did the Tribunal hold?

The Tribunal held that goodwill arising from a slump sale acquisition of a going concern is an intangible asset eligible for depreciation under Section 32(1)(ii). The fifth proviso to Section 32(1) is not applicable to slump sales between unrelated parties.

What were the facts?

The assessee acquired a manufacturing unit on a slump sale basis and claimed depreciation on goodwill, which was the excess of the purchase consideration over the net assets. The Assessing Officer and CIT(A) disallowed the depreciation, relying on the fifth proviso to Section 32(1) and a previous tribunal decision.

What were the issues?

Whether goodwill arising from a slump sale acquisition of a going concern is eligible for depreciation, and if the fifth proviso to Section 32(1) restricts such depreciation.

Which sections of the Income-tax Act were involved?

Section 32(1),Section 32(1)(ii)

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, “A” BENCH MUMBAI

For Appellant: Shri H. N. Motiwala
For Respondent: Shri Surendra Mohan, SR. DR
Hearing: 20.01.2026Pronounced: 22.01.2026

PER MAKARAND VASANT MAHADEOKAR, AM: This appeal by the assessee is directed against the order passed by the Commissioner of Income-tax (Appeals), National Faceless Appeal Centre (NFAC), Delhi [hereinafter referred to as “CIT(A)”], dated 24.09.2025, passed under section 250 of the Income-tax Act, 1961 [hereinafter referred to as “the Act”] for 2 Anshul Specialty Molecules Pvt Ltd Assessment Year 2020–21, whereby the learned CIT(A) confirmed the assessment order dated 27.09.2022 passed by the Assessing Officer under section 143(3) read with section 144B of the Act.

Facts of the Case

2.

The assessee is a private limited company engaged in the busine

The order continues below.

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