GBT INDIA PRIVATE LIMITED,NEW DELHI vs. ACIT,OSD, DELHI

ITA 1764/DEL/2022Status: DisposedITAT Delhi26 November 2025AY 2018-19Bench: SHRI CHALLA NAGENDRA PRASAD (Judicial Member), SHRI AVDHESH KUMAR MISHRA (Accountant Member)30 pages
AI SummaryAllowed

What did the Tribunal hold?

The Tribunal held that depreciation on goodwill acquired through a slump sale is allowable, and bad debts written off are also deductible. The principle of consistency with previous assessment years was also considered.

What were the facts?

The assessee claimed depreciation on goodwill and deduction for bad debts written off. The Assessing Officer disallowed these claims, leading to an appeal before the Income Tax Appellate Tribunal.

What were the issues?

Whether depreciation on goodwill arising from a slump sale is allowable and whether bad debts written off meet the conditions for deduction.

Which sections of the Income-tax Act were involved?

Section 36(1)(vii),Section 36(2),Section 43(1),Section 32(1)(ii)

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Income Tax Appellate Tribunal, DELHI BENCH ‘I’: NEW DELHI

Before: SHRI CHALLA NAGENDRA PRASAD & SHRI AVDHESH KUMAR MISHRA

For Appellant: Adv. Shri Jinendra Kataria, Advocate
For Respondent: Shri Dharm Veer Singh, CIT(DR), Shri Ajay Kumar Arora, Sr. DR
Hearing: 21/11/2025Pronounced: 26/11/2025

PER AVDHESH KUMAR MISHRA, AM

This appeal of the assessee for Assessment Year (‘AY’) 2018-19 is directed against the order dated 30.06.2022 of the Assistant Commissioner of Income Tax, O , New Delhi passed under section 143(3) r.w.s. 144C(13) of the Income Tax Act, 1961 (‘Act’).

2.

The assessee has raised following grounds of appeal:

“1. 1. That, on the facts and circumstances of the case and in law, the Ld. AO erred in assessing the total income of the Appellant for the relevant AY at Rs.28,50,39,521/- as against the returned income o

The order continues below.

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