AKORN INDIA PVT. LTD.,,GURGAON vs. ACIT, CIRCLE-2(1), NEW DELHI

ITA 6567/DEL/2018Status: DisposedITAT Delhi28 October 2025AY 2014-15Bench: SHRI M BALAGANESH (Accountant Member), SHRI VIMAL KUMAR (Judicial Member)22 pages
AI SummaryRemanded

What did the Tribunal hold?

The Tribunal held that the issue of depreciation on goodwill and non-compete fees requires further examination. It also noted that the AO's rejection of the goodwill valuation was based on a lack of clarity regarding its basis and the difference between IGAAP and US GAAP adjustments.

What were the facts?

The assessee acquired a business under a slump purchase agreement and claimed depreciation on goodwill and non-compete fees. The Assessing Officer (AO) rejected these claims, arguing that goodwill was not an intangible asset eligible for depreciation under the Income Tax Act and that the valuation was not properly substantiated. The AO also questioned the valuation of tangible assets based on circle rates.

What were the issues?

Whether goodwill and non-compete fees are eligible for depreciation under Section 32(1)(ii) of the Income Tax Act, and whether the valuation of these intangible assets and tangible assets was correctly determined.

Which sections of the Income-tax Act were involved?

Section 32(1)(ii)

AI-generated summary — verify with the full judgment below

Cases cited in this judgment(1)Show list

Detected automatically from the text. Citations are also linked where they appear in the judgment. The count shows how many other judgments on BharatTax rely on the same authority.

Heard together (4 matters)

I.T.A No.1743/Del/2017
I.T.A No.2074/Del/2017
I.T.A No.6566/Del/2018
I.T.A No.6837/Del/2018

Read from the judgment's own cause title. This page is filed under one of them.

IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCH “F” NEW DELHI BEFORE SHRI M BALAGANESH, ACCOUNTANT MEMBER AND SHRI VIMAL KUMAR, JUDICIAL MEMBER आ.अ.सं/.I.T.A No.1743/Del/2017 िनधा"रणवष"/Assessment Year:2012-13 बनाम अपीलाथ" Appellant ""यथ"/Respondent आ.अ.सं/.I.T.A No.2074/Del/2017 िनधा"रणवष"/Assessment Year:2012-13 बनाम ACIT, AKORN INDIA PVT. LTD. Circle 2(1), Room No.153A, Vs. 1105-1106, Ashoka Estate, C.R. Building, I.P. Estate, Barakhamba Road, New Delhi. New Delhi. PAN No.AAJCA8290J अपीलाथ" Appellant ""यथ"/Respondent आ.अ.सं/.I.T.A No.6566/Del/2018 िनधा"रणवष"/Assessment Year:2013-14 बनाम अपीलाथ" Appellant ""यथ"/Respondent आ.अ.सं/.I.T.A No.6837/Del/2018 िनधा"रणवष"/Assessment Year:2013-14 बनाम DCIT, AKORN INDIA PVT. LTD. Circle 2(1), Room No.153A, Vs. 1105-1106, Ashoka Estate, C.R. Building, I.P. Estate, Barakhamba Road, New Delhi. New Delhi. PAN No.AAJCA8290J अपीलाथ" Appellant ""यथ"/Respondent

आ.अ.सं/.I.T.A No

The order continues below.

Read the full judgment

A free account opens 10 full judgments a month. Re-reading one you have already opened does not count again.

Create a free accountSign in

See plans and prices

The summary, the parties, the sections and the citations above are open to everyone and always will be. Only the text of the order and the PDF are metered.

More judgments on Section 32(1)(ii)

All 565 judgments and leading authorities on Section 32(1)(ii) →

Recent GST High Court judgments

Search GST case law →