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Facts
The assessee, Aptara Technologies Private Limited, is engaged in providing IT enabled conversion services. During scrutiny assessment proceedings following a merger with Maximise Learning Pvt. Ltd. effective from 01.04.2014, the Assessing Officer made certain disallowances and levies.
Held
The Tribunal is hearing an appeal against an order that confirmed the disallowance of depreciation on goodwill, the levy of buy-back tax, and the non-allowance of deduction for education cess on income-tax.
Key Issues
Allowability of depreciation on goodwill, levy of buy-back tax, and deduction for education cess on income-tax.
Sections Cited
143(3), 32, 115QA, 139(1), 143(1)(a), 143(2), 142(1)
AI-generated summary — verify with the full judgment below
Income Tax Appellate Tribunal, PUNE BENCHES “A”, PUNE
Before: DR.MANISH BORAD & SHRI VINAY BHAMORE
Appellant by : Shri Percy Pardiwalla Respondent by : Shri Amol Khairnar Date of hearing : 03.12.2025 Date of pronouncement : 17.02.2026 आदेश / ORDER
PER DR. MANISH BORAD, ACCOUNTANT MEMBER :
The captioned appeal at the instance of assessee pertaining to A.Y. 2015-16 is directed against the order dated 20.12.2019 framed by CIT(A), Pune-1 arising out of Assessment Order dated 26.12.2017 passed u/s.143(3) of the Income Tax Act, 1961.
Assessee has raised following grounds of appeal :
“The grounds hereinafter taken by the Appellant are without prejudice to one another 1:0 Re.: Disallowance of depreciation on 'Goodwill' u/s. 32 of the Income-tax Act, 1961: 1:1 The Commissioner of Income-tax (Appeals) has erred in confirming the disallowance of depreciation of Rs.1,49,30,000/- on 'Goodwill' of Rs.5,97,20,000/- u/s. 32 of the Income-tax Act, 1961. 2 Aptara Technologies Private Limited 1:2 The Appellant submits that considering the facts and circumstances of its case and the law prevailing on the subject, depreciation is allowable on goodwill and the stand taken by the Assessing Officer is illegal, incorrect, erroneous and misconceived and not in accordance with law and the Commissioner of Income-tax (Appeals) ought to have held as such. 1:3 The Appellant submits that the Assessing Officer be directed to delete the disallowance made by him and to re-compute its total income accordingly. 2:0 Re.: Levying of Buy Back Tax u/s. 1150A of the Income-tax Act, 1961: 2:1 The Commissioner of Income-tax (Appeals) has erred confirming the levy of Buy Back Tax u/s.115QA of the Income-tax Act, 1961 of Rs.99,57,776/-. 2:2 The Appellant submits that considering the facts and circumstances of its case and the law prevailing on the subject, tax u/s. 115QA of the Income-tax Act, 1961 is not leviable in the instant case, and the action of the Assessing Officer is illegal, incorrect, erroneous and misconceived and the Commissioner of Income-tax (Appeals) ought to have held as such. 2:3 The Appellant submits that the Assessing Officer be directed to delete the erroneous levy of Buy Back Tax u/s.115QA of the Income- tax Act, 1961 of Rs.99,57,776/-levied by him and to re-compute its tax liability accordingly. 3:0 Re.: Deduction in respect of 'Education Cess on income-tax' and 'secondary and higher education cess on income-tax' (collectively referred to as 'education cess in income-tax') payable for the year under consideration, while computing the total income of the Appellant: 3:1 The Assessing Officer has erred in not allowing a deduction for the 'education cess on income-tax payable for the year under consideration. 3:2 The assessee submits that considering the facts and circumstances of its case and the law prevailing on the subject, 'education cess on income-tax' for the year under consideration, though not claimed as a deduction by the assessee while filing its return of income for the year under consideration, ought to have been allowed while assessing its income for the year under consideration. 3:3 The assessee submits that the Assessing Officer be directed to re-compute its total income and tax thereon after allowing deduction for 'education cess on income-tax'.
3 Aptara Technologies Private Limited 4:0 Re: General 4:1 The Appellant craves leave to add, alter, amend, substitute and/or modify in any manner whatsoever all or any of the foregoing grounds of appeal at or before the hearing of the appeal.”
Brief facts of the case are that the assessee is a Private Limited Company engaged in the field of providing IT enabled conversion services which include content conversion and management, e-learning solutions, imaging, graphic arts and other related services. The assessee Aptara Technologies Pvt. Ltd. (in short ‘APTL’) is a 100% subsidiary of Aptara Inc. USA which holds 100000 Equity shares of face value of Rs.10/- each. Along with the assessee, there is another subsidiary company namely Maximise Learning Pvt. Ltd. (in short ‘MLPL’) which is also 100% owned by the holding company Aptara Inc. USA.
The assessee filed its original return of income u/s.139(1) of the Act on 25.11.2015 declaring income of Rs.1,66,65,240/-. After the regular processing of return u/s.143(1)(a) of the Act, case of the assessee selected for scrutiny followed by serving of valid notices u/s.143(2) and 142(1) of the Act. During the course of assessment proceedings, ld. Assessing Officer observed that there is an amalgamation in the nature of merger with MLPL (Transferor company) and Assessee-ATPL (Transferee company). Hon’ble Bombay High Court vide order dated 19.09.2014 has sanctioned the scheme of amalgamation effective from 01.04.2014 (Appointed date) u/s.391 to 394 of the Companies Act which has been subsequently filed with the