AP Paper Mills Ltd. v. ACIT

128 TTJ 596Income Tax Appellate Tribunal2010#8723 most cited

What is AP Paper Mills Ltd. v. ACIT authority for?

Goodwill arising on amalgamation is an asset and eligible for depreciation under Section 32(1) of the Income Tax Act, 1961. The actual cost of such goodwill in the hands of the amalgamated company is the same as it would have been in the hands of the amalgamating company.

12

judgments rely on this decision, according to BharatTax’s citation analysis of 366,314 Indian tax judgments — from 2019 to 2025.

Also referred to as

AP Paper Mills Ltd. v. ACIT · ITAT · Hyderabad · goodwill · amalgamation · depreciation · Section 32(1) · Explanation 3(b) to Section 32(1) · actual cost of goodwill · amalgamated company · amalgamating company

Sections most often in play

Section 142(1)Section 143(3)Section 115JBSection 143(2)Section 2(1B)Section 43(1)Section 49Section 10AA

Issues it is cited on

goodwill arising on amalgamationresale price methodsection 100profit split methodbright line testsection 36(l)(va)amp expendituresection 92esection 43(6)(c)transferee companysection 92(1)cost plus method

Judgments citing AP Paper Mills Ltd. v. ACIT

Viacom 18, Media Pvt Ltd, Mumbai vs. PCIT-8, Mumbai

ITA 2591/MUM/2025[2019-20]Status: DisposedITAT Mumbai27 Nov 2025AY 2019-20

Bench: Shri Om Prakash Kant () & Shri Raj Kumar Chauhan ()

For Appellant: Mr. Madhur Agarwal/Ms. MokshaFor Respondent: Mr. Vivek Perampurna, CIT-DR
Section 143(3)Section 144BSection 263Section 32

…line Caterers (P.) Ltd. vs. ITO ((2008) 20 SOT 266 (Mumbai Tribunal)] • Bosch Ltd. vs. CIT (2009-TIOL-736-ITAT-Bang (Bangalore Tribunal)) • Kotak Forex Brokerage Ltd. vs. ACIT ((2009) (33 SOT 237) (Mumbai Tribunal)] • A.P. Paper Mills Ltd. vs. ACIT ((2010) 128 TTJ 596 (Hyderabad Tribunal)]2 • Mylan Laboratories Limited vs. Dy. CIT 16(2) [ITA No. 2335/Hyd./2018] (Hyderabad Tribunal) 5.4 Thereafter, again the Assessing Officer issued further query on the issue of depreciation of the goodwill in his show cause notice dated 17/09/2022 (PB-34), relevant part of which is reproduced as under: “1. Deprecation claim…

Signode India Limited, Hyderabad vs. ACIT, Circle-3(1), Hyderabad

ITA 240/HYD/2023[2015-16]Status: DisposedITAT Hyderabad14 Nov 2025AY 2015-16

Bench: Shri Vijay Pal Rao & Shri Manjunatha G

For Appellant: Shri H. SrinivasuluFor Respondent: Dr. Narendra Kumar Naik, CIT-DR
Section 143(3)Section 144C(5)Section 32

…oodwill' is an asset under Explanation 3(b) to Section 32(1) of the Act." The Learned Counsel for the Assessee submitted that, on identical facts and circumstances, the Coordinate Bench of ITAT, Hyderabad in the case of A.P. Paper Mills Ltd., vs., ACIT [2010] 128 TTJ 596 [ITAT-Hyd.] has allowed the claim of depreciation on Goodwill. He submitted that, although, the assessee company has brought-out all these to the notice of the Assessing Officer during the course of 17 ITA.No.434/Hyd/2021 & ITA 240/Hyd/2023 M/s. Signode India Limited assessment proceedings, the Assessing Officer did not consider the settled legal…

Signode India Limited, Hyderabad vs. Deputy Commissioner of Income Tax, Circle-3(1), Hyderabad

ITA 434/HYD/2021[2016-17]Status: DisposedITAT Hyderabad14 Nov 2025AY 2016-17

Bench: Shri Vijay Pal Rao & Shri Manjunatha G

For Appellant: Shri H. SrinivasuluFor Respondent: Dr. Narendra Kumar Naik, CIT-DR
Section 143(3)Section 144C(5)Section 32

…oodwill' is an asset under Explanation 3(b) to Section 32(1) of the Act." The Learned Counsel for the Assessee submitted that, on identical facts and circumstances, the Coordinate Bench of ITAT, Hyderabad in the case of A.P. Paper Mills Ltd., vs., ACIT [2010] 128 TTJ 596 [ITAT-Hyd.] has allowed the claim of depreciation on Goodwill. He submitted that, although, the assessee company has brought-out all these to the notice of the Assessing Officer during the course of 17 ITA.No.434/Hyd/2021 & ITA 240/Hyd/2023 M/s. Signode India Limited assessment proceedings, the Assessing Officer did not consider the settled legal…

ACIT, Circle-1(1), Rajkot vs. Gandhi Reality (India) Private Limited, Rajkot

In the result, the appeal of the Revenue is dismissed

ITA 110/RJT/2025[2018-19]Status: DisposedITAT Rajkot25 Aug 2025AY 2018-19

Bench: Dr. Arjun Lal Saini, Am. & Dinesh Mohan Sinha, Jm

For Appellant: Shri R. K. Doshi, Ld. ARFor Respondent: Shri Praveen Verma, Ld. CIT. (DR)
Section 142(1)Section 143(2)Section 143(3)Section 144BSection 230

…on various judgements of Hon`ble Supreme Court, High Courts and Tribunals such as, Urmin Marketing (P.) Ltd. v. DCIT (2020) 122 taxmann.com 40 (Ahmedabad -ITAT),CIT v. Smifs Securities Ltd. [2012] 24 taxmann.com 222 (SC), A.P. Paper Mills Ltd. v. ACIT (2010) 128 TTJ 596 (Hyd), DCIT v. M/s Krishna Drugs Ltd. (ITA 198/Hyd/2011), Zuari Cement Limited v. Assistant Commissioner of Income Tax, [TS-5823-ITAT- 2016(Hyderabad)-0] and Cosmos Cooperative Bank Limited vs. DCIT (TS-47- ITAT-2014) (Pune Tribunal). The learned CIT(A) also observed that amendments made by the Finance Act 2021, in a relation to depreciation on g…

The ACIT, Circle-2(1)(1), Ahmedabad vs. M/S. Intas Pharmaceuticals Ltd., Ahmedabad

Accordingly, this ground raised by the Revenue is dismissed

ITA 281/AHD/2021[2015-16]Status: DisposedITAT Ahmedabad21 May 2025AY 2015-16

Bench: S/Shri T.R. Senthil Kumar & Makarand V.Mahadeokarasstt.Year : 2015-16 Acit, Cir.2(1)(1) M/S.Intas Pharmaceuticals Ltd Vejalpur Vs Corporate House Ahmedabad. S.G. Highway Nr.Sola Bridge, Thaltej Ahmedabad 380 054. Pan : Aaaci 5120 L Asstt.Year : 2015-16 M/S.Intas Pharmaceuticals Ltd Acit, Cir.2(1)(1) Corporate House Vs Vejalpur S.G. Highway Ahmedabad. Nr.Sola Bridge, Thaltej Ahmedabad 380 054. Pan : Aaaci 5120 L (Applicant) (Responent) : Assessee By Shri S.N. Soparkar, Sr.Advocae & Shri Parin Shah, Ar : Shri Ragnesh Das, Cit-Dr Revenue By सुनवाई क" तारीख/Date Of Hearing : 28/04/2025 घोषणा क" तारीख /Date Of Pronouncement: 21/05/2025 आदेश आदेश/O R D E R आदेश आदेश

Section 115JSection 142(1)Section 143(2)Section 143(3)Section 144CSection 14ASection 35Section 36(1)(iii)Section 37Section 92C

…such business rights, which in the instant case was evidenced by excess consideration paid. ITA No.281 and 222/Ahd/2021 24 38. In support of the view, reliance was also placed on the decisions of Hon’ble Hyderabad ITAT in AP Paper Mills Ltd. v. ACIT [(2009) 128 TTJ 596 (Hyd)] and Hon’ble Delhi ITAT in Aricent Technologies (Holdings) Ltd. v. DCIT in ITA No. 90/Del/2013 dated 26.07.2019. The latter had reiterated that the actual cost of goodwill in the hands of the amalgamated company is the same as it would have been in the hands of the amalgamating company had it continued to hold the asset. However, the CIT(A)…

Intas Pharmaceuticals Ltd., Ahmedabad vs. The DCIT, Circle-2(1)(1), Ahmedabad

Accordingly, this ground raised by the Revenue is dismissed

ITA 222/AHD/2021[2015-16]Status: DisposedITAT Ahmedabad21 May 2025AY 2015-16

Bench: S/Shri T.R. Senthil Kumar & Makarand V.Mahadeokarasstt.Year : 2015-16 Acit, Cir.2(1)(1) M/S.Intas Pharmaceuticals Ltd Vejalpur Vs Corporate House Ahmedabad. S.G. Highway Nr.Sola Bridge, Thaltej Ahmedabad 380 054. Pan : Aaaci 5120 L Asstt.Year : 2015-16 M/S.Intas Pharmaceuticals Ltd Acit, Cir.2(1)(1) Corporate House Vs Vejalpur S.G. Highway Ahmedabad. Nr.Sola Bridge, Thaltej Ahmedabad 380 054. Pan : Aaaci 5120 L (Applicant) (Responent) : Assessee By Shri S.N. Soparkar, Sr.Advocae & Shri Parin Shah, Ar : Shri Ragnesh Das, Cit-Dr Revenue By सुनवाई क" तारीख/Date Of Hearing : 28/04/2025 घोषणा क" तारीख /Date Of Pronouncement: 21/05/2025 आदेश आदेश/O R D E R आदेश आदेश

Section 115JSection 142(1)Section 143(2)Section 143(3)Section 144CSection 14ASection 35Section 36(1)(iii)Section 37Section 92C

…such business rights, which in the instant case was evidenced by excess consideration paid. ITA No.281 and 222/Ahd/2021 24 38. In support of the view, reliance was also placed on the decisions of Hon’ble Hyderabad ITAT in AP Paper Mills Ltd. v. ACIT [(2009) 128 TTJ 596 (Hyd)] and Hon’ble Delhi ITAT in Aricent Technologies (Holdings) Ltd. v. DCIT in ITA No. 90/Del/2013 dated 26.07.2019. The latter had reiterated that the actual cost of goodwill in the hands of the amalgamated company is the same as it would have been in the hands of the amalgamating company had it continued to hold the asset. However, the CIT(A)…

M/S. Dabur India Ltd., New Delhi vs. Addl.CIT, New Delhi

In the result, the appeals filed by the Revenue are partly allowed and the appeals filed by the assessee are partly allowed for statistical purposes

ITA 6525/DEL/2014[2008-09]Status: DisposedITAT Delhi18 Feb 2021AY 2008-09

Bench: Shri R.K. Panda & Ms Suchitra Kamble

For Appellant: Shri Ajay Vohra, Sr. AdvocateFor Respondent: Shri Anupam Kant Garg, CIT-DR
Section 115JSection 143(1)Section 143(2)Section 143(3)Section 80GSection 80ISection 92CSection 92E

…d. v. ACIT: 108 TTJ 180 (Del. Trib.) 21) Taj Sats Air Catering Ltd. vs. ACIT: 146 ITD 231 (Mum Trib.); 22) Skyline Caterers (P) Ltd. v. ITO: 116 ITD 348 (Mum. Trib); 23) Just Dial Ltd. vs. ACIT: 289/Mum/2013 (Mum. Trib.); 24) The AP Paper Mills Ltd. vs. ACIT: 128 TTJ 596 (Hyd. Trib.); 25) SKS Micro Finance Ltd. vs. DCIT: 160 ITD 364 (Hyd. Trib.); 26) Shamrao Vithal Coop Bank Ltd. vs DCIT : ITA Nos. 4092/Mum/2011; and 27) DCIT vs. Ricoh India Limited : ITA No. 4700/MUM/2015 114.5 Referring to the following decisions, he submitted that the entries made in the books of account are not determinative of the ambit of…

DCIT, New Delhi vs. M/S. Dabur India Ltd., New Delhi

In the result, the appeals filed by the Revenue are partly allowed and the appeals filed by the assessee are partly allowed for statistical purposes

ITA 6256/DEL/2014[2008-09]Status: DisposedITAT Delhi18 Feb 2021AY 2008-09

Bench: Shri R.K. Panda & Ms Suchitra Kamble

For Appellant: Shri Ajay Vohra, Sr. AdvocateFor Respondent: Shri Anupam Kant Garg, CIT-DR
Section 115JSection 143(1)Section 143(2)Section 143(3)Section 80GSection 80ISection 92CSection 92E

…d. v. ACIT: 108 TTJ 180 (Del. Trib.) 21) Taj Sats Air Catering Ltd. vs. ACIT: 146 ITD 231 (Mum Trib.); 22) Skyline Caterers (P) Ltd. v. ITO: 116 ITD 348 (Mum. Trib); 23) Just Dial Ltd. vs. ACIT: 289/Mum/2013 (Mum. Trib.); 24) The AP Paper Mills Ltd. vs. ACIT: 128 TTJ 596 (Hyd. Trib.); 25) SKS Micro Finance Ltd. vs. DCIT: 160 ITD 364 (Hyd. Trib.); 26) Shamrao Vithal Coop Bank Ltd. vs DCIT : ITA Nos. 4092/Mum/2011; and 27) DCIT vs. Ricoh India Limited : ITA No. 4700/MUM/2015 114.5 Referring to the following decisions, he submitted that the entries made in the books of account are not determinative of the ambit of…

M/S. Dabur India Ltd., New Delhi vs. Addl.CIT, New Delhi

In the result, the appeals filed by the Revenue are partly allowed and the appeals filed by the assessee are partly allowed for statistical purposes

ITA 3241/DEL/2014[2007-08]Status: DisposedITAT Delhi18 Feb 2021AY 2007-08

Bench: Shri R.K. Panda & Ms Suchitra Kamble

For Appellant: Shri Ajay Vohra, Sr. AdvocateFor Respondent: Shri Anupam Kant Garg, CIT-DR
Section 115JSection 143(1)Section 143(2)Section 143(3)Section 80GSection 80ISection 92CSection 92E

…d. v. ACIT: 108 TTJ 180 (Del. Trib.) 21) Taj Sats Air Catering Ltd. vs. ACIT: 146 ITD 231 (Mum Trib.); 22) Skyline Caterers (P) Ltd. v. ITO: 116 ITD 348 (Mum. Trib); 23) Just Dial Ltd. vs. ACIT: 289/Mum/2013 (Mum. Trib.); 24) The AP Paper Mills Ltd. vs. ACIT: 128 TTJ 596 (Hyd. Trib.); 25) SKS Micro Finance Ltd. vs. DCIT: 160 ITD 364 (Hyd. Trib.); 26) Shamrao Vithal Coop Bank Ltd. vs DCIT : ITA Nos. 4092/Mum/2011; and 27) DCIT vs. Ricoh India Limited : ITA No. 4700/MUM/2015 114.5 Referring to the following decisions, he submitted that the entries made in the books of account are not determinative of the ambit of…

DCIT, New Delhi vs. M/S. Dabur India Ltd., New Delhi

In the result, the appeals filed by the Revenue are partly allowed and the appeals filed by the assessee are partly allowed for statistical purposes

ITA 3114/DEL/2014[2007-08]Status: DisposedITAT Delhi18 Feb 2021AY 2007-08

Bench: Shri R.K. Panda & Ms Suchitra Kamble

For Appellant: Shri Ajay Vohra, Sr. AdvocateFor Respondent: Shri Anupam Kant Garg, CIT-DR
Section 115JSection 143(1)Section 143(2)Section 143(3)Section 80GSection 80ISection 92CSection 92E

…d. v. ACIT: 108 TTJ 180 (Del. Trib.) 21) Taj Sats Air Catering Ltd. vs. ACIT: 146 ITD 231 (Mum Trib.); 22) Skyline Caterers (P) Ltd. v. ITO: 116 ITD 348 (Mum. Trib); 23) Just Dial Ltd. vs. ACIT: 289/Mum/2013 (Mum. Trib.); 24) The AP Paper Mills Ltd. vs. ACIT: 128 TTJ 596 (Hyd. Trib.); 25) SKS Micro Finance Ltd. vs. DCIT: 160 ITD 364 (Hyd. Trib.); 26) Shamrao Vithal Coop Bank Ltd. vs DCIT : ITA Nos. 4092/Mum/2011; and 27) DCIT vs. Ricoh India Limited : ITA No. 4700/MUM/2015 114.5 Referring to the following decisions, he submitted that the entries made in the books of account are not determinative of the ambit of…

Dy. Commissioner of Income Tax, Circle-16(2), Hyderabad vs. Mylan Laboratories Limited, Hyderabad

In the result, appeal of the assessee is partly allowed

ITA 12/HYD/2019[2014-15]Status: DisposedITAT Hyderabad13 Nov 2019AY 2014-15

Bench: Smt. P. Madhavi Devi & Shri S. Rifaur Rahman

For Respondent: Sh. YVST Sai, D.R
Section 251Section 28Section 32Section 32(1)Section 37(1)Section 43(1)Section 68

…business of commercial right or of similar nature as referred to in clause (b) to Explanation 3 of section 32(1) and in support of his contention, he placed reliance upon the decision of the coordinate bench of the Tribunal in the case of AP Paper Mills Ltd., 128 TTJ 596 (Hyd.) and also the decision of the Hon’ble Delhi High Court in the case of Areva T&D India Ltd., 345 ITR 451. In support of his contention that there cannot be a differential tax treatment between goodwill generated on slump sale and amalgamation, the ld. Counsel for the assessee placed reliance upon the decision of the Hon’ble Delhi High Court…

Mylan Laboratories Limited, Hyderabad vs. Dy. Commissioner of Income Tax, Circle-16(2), Hyderabad

In the result, appeal of the assessee is partly allowed

ITA 2335/HYD/2018[2014-15]Status: DisposedITAT Hyderabad13 Nov 2019AY 2014-15

Bench: Smt. P. Madhavi Devi & Shri S. Rifaur Rahman

For Respondent: Sh. YVST Sai, D.R
Section 251Section 28Section 32Section 32(1)Section 37(1)Section 43(1)Section 68

…business of commercial right or of similar nature as referred to in clause (b) to Explanation 3 of section 32(1) and in support of his contention, he placed reliance upon the decision of the coordinate bench of the Tribunal in the case of AP Paper Mills Ltd., 128 TTJ 596 (Hyd.) and also the decision of the Hon’ble Delhi High Court in the case of Areva T&D India Ltd., 345 ITR 451. In support of his contention that there cannot be a differential tax treatment between goodwill generated on slump sale and amalgamation, the ld. Counsel for the assessee placed reliance upon the decision of the Hon’ble Delhi High Court…

AP Paper Mills Ltd. v. ACIT (128 TTJ 596) — Cited in 12 Judgments | BharatTax