“Section 49(1)(iii)(e)”
The decision most relied on for Section 49(1)(iii)(e) is Marketing Pvt. Ltd. v. DCIT (122 Taxmann.com 40), cited in 41 judgments on BharatTax.
Leading authorities on Section 49(1)(iii)(e)
Where goodwill is recorded pursuant to a merger based on purchase consideration determined by a valuation report, and no goodwill is transferred from the predecessor's books, the fifth proviso to section 32(1) of the Income-tax Act, 1961, is not applicable, and thus depreciation on such goodwill is not allowable.
The Assessing Officer can apply Rule 8D for disallowance under Section 14A only if they are not satisfied with the correctness of the assessee's claim regarding expenditure in relation to exempt income, after considering the assessee's accounts. Invocation of Rule 8D is not automatic.
An exchange is a mutual transfer of ownership of one thing for the ownership of another. This definition of exchange is consistent with the definition of 'transfer' under Section 2(47) of the Income Tax Act, 1961, which includes exchange or relinquishment of an asset.
The levy of interest under Section 234-A of the Income Tax Act is statutory, mandatory, and automatic, meaning it cannot be a question of law that can be raised in appeal. The High Court's jurisdiction under Section 260A is limited to questions of law, and thus, observations on the levy of interest are generally outside its scope.
Amalgamation, involving a compromise or arrangement sanctioned by the court, is a foundational basis for passing an order of amalgamation, and the subsequent acquisition of assets by the other undertaking signifies the loss of identity and ownership of the earlier concern.
