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“Section 55(2)(a)(ii)”

Section References (mined)Section 55Section 55(2)(a)(ii)29 judgments

The decision most relied on for Section 55(2)(a)(ii) is 275(Delhi); Pr. CIT v. West Bengal Infrastructure Development Finance Corpn Ltd. (143 Taxmann.com 135), cited in 25 judgments on BharatTax.

Leading authorities on Section 55(2)(a)(ii)

275(Delhi); Pr. CIT v. West Bengal Infrastructure Development Finance Corpn Ltd.
143 Taxmann.com 135 · 2022 · High Court
25
citing judgments

Where an expense is incurred for the purpose of acquiring a capital asset, and that asset is subsequently sold, the expenditure must be considered as part of the cost of acquisition of that asset for the purpose of calculating capital gains. This is because the expense forms an integral part of the cost of acquiring the asset, not an expenditure of revenue nature.

PCIT v. CIMS Hospital Pvt.Ltd.
125 Taxmann.com 227 · 2021 · High Court
17
citing judgments

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.

Judgments citing Section 55(2)(a)(ii)

ACIT Central Circle 1(3), Ahmedabad vs. Unicorn Packaging LLP, Ahmedabad

In the result, this appeal of the Revenue is, accordingly, stands dismissed

ITA 898/AHD/2025[2020-21]Status: DisposedITAT Ahmedabad25 Feb 2026AY 2020-21

Bench: Shri Sanjay Garg & Shri Narendra Prasad Sinhaआयकर अपील सं/ िनधा"रण वष"/ Sl. Appeal(S) By :

For Appellant: Shri Aseem L. Thakkar, ARFor Respondent: Shri Alpesh Parmar, CIT-DR
Section 32(1)Section 43(1)Section 43(6)(c)Section 49(1)(iii)Section 55(2)(a)

section 49(1)(iii)(e), Explanation 7 to section 43(1) and/or Explanation 2(b) to section 43(6)(c) and section 55(2)(a)(ii) which established that Depreciation cannot be claimed on goodwill arising out of amalgamation under the existing provision of the Income ... section 49(1)(iii)(e), Explanation 7 to section 43(1), Explanation 2(b) to section 43(6)(c) and section 55(2)(a)(ii) to hold that no depreciation could be allowed on goodwill arising in a tax-neutral amalgamation on the footing that there was no cost

ACIT Central Circle 1(3), Ahmedabad vs. Unicorn Packaging LLP, Ahmedabad

In the result, this appeal of the Revenue is, accordingly, stands dismissed

ITA 897/AHD/2025[2018-19]Status: DisposedITAT Ahmedabad25 Feb 2026AY 2018-19

Bench: Shri Sanjay Garg & Shri Narendra Prasad Sinhaआयकर अपील सं/ िनधा"रण वष"/ Sl. Appeal(S) By :

For Appellant: Shri Aseem L. Thakkar, ARFor Respondent: Shri Alpesh Parmar, CIT-DR
Section 32(1)Section 43(1)Section 43(6)(c)Section 49(1)(iii)Section 55(2)(a)

section 49(1)(iii)(e), Explanation 7 to section 43(1) and/or Explanation 2(b) to section 43(6)(c) and section 55(2)(a)(ii) which established that Depreciation cannot be claimed on goodwill arising out of amalgamation under the existing provision of the Income ... section 49(1)(iii)(e), Explanation 7 to section 43(1), Explanation 2(b) to section 43(6)(c) and section 55(2)(a)(ii) to hold that no depreciation could be allowed on goodwill arising in a tax-neutral amalgamation on the footing that there was no cost

ACIT CC-1(3), Ahmedabad vs. Unicorn Packaging LLP, Ahmedabad

In the result, this appeal of the Revenue is, accordingly, stands dismissed

ITA 896/AHD/2025[2017-18]Status: DisposedITAT Ahmedabad25 Feb 2026AY 2017-18

Bench: Shri Sanjay Garg & Shri Narendra Prasad Sinhaआयकर अपील सं/ िनधा"रण वष"/ Sl. Appeal(S) By :

For Appellant: Shri Aseem L. Thakkar, ARFor Respondent: Shri Alpesh Parmar, CIT-DR
Section 32(1)Section 43(1)Section 43(6)(c)Section 49(1)(iii)Section 55(2)(a)

section 49(1)(iii)(e), Explanation 7 to section 43(1) and/or Explanation 2(b) to section 43(6)(c) and section 55(2)(a)(ii) which established that Depreciation cannot be claimed on goodwill arising out of amalgamation under the existing provision of the Income ... section 49(1)(iii)(e), Explanation 7 to section 43(1), Explanation 2(b) to section 43(6)(c) and section 55(2)(a)(ii) to hold that no depreciation could be allowed on goodwill arising in a tax-neutral amalgamation on the footing that there was no cost

ACIT Central Circle 1(3), Ahmedabad vs. Unicorn Packaging Private Limited, Ahmedabad

In the result, this appeal of the Revenue is, accordingly, stands dismissed

ITA 895/AHD/2025[2016-17]Status: DisposedITAT Ahmedabad25 Feb 2026AY 2016-17

Bench: Shri Sanjay Garg & Shri Narendra Prasad Sinhaआयकर अपील सं/ िनधा"रण वष"/ Sl. Appeal(S) By :

For Appellant: Shri Aseem L. Thakkar, ARFor Respondent: Shri Alpesh Parmar, CIT-DR
Section 32(1)Section 43(1)Section 43(6)(c)Section 49(1)(iii)Section 55(2)(a)

section 49(1)(iii)(e), Explanation 7 to section 43(1) and/or Explanation 2(b) to section 43(6)(c) and section 55(2)(a)(ii) which established that Depreciation cannot be claimed on goodwill arising out of amalgamation under the existing provision of the Income ... section 49(1)(iii)(e), Explanation 7 to section 43(1), Explanation 2(b) to section 43(6)(c) and section 55(2)(a)(ii) to hold that no depreciation could be allowed on goodwill arising in a tax-neutral amalgamation on the footing that there was no cost

ACIT Central Circle 1(3), Ahmedabad vs. Unicorn Packaging LLP, Ahmedabad

In the result, this appeal of the Revenue is, accordingly, stands dismissed

ITA 894/AHD/2025[2016-17]Status: DisposedITAT Ahmedabad25 Feb 2026AY 2016-17

Bench: Shri Sanjay Garg & Shri Narendra Prasad Sinhaआयकर अपील सं/ िनधा"रण वष"/ Sl. Appeal(S) By :

For Appellant: Shri Aseem L. Thakkar, ARFor Respondent: Shri Alpesh Parmar, CIT-DR
Section 32(1)Section 43(1)Section 43(6)(c)Section 49(1)(iii)Section 55(2)(a)

section 49(1)(iii)(e), Explanation 7 to section 43(1) and/or Explanation 2(b) to section 43(6)(c) and section 55(2)(a)(ii) which established that Depreciation cannot be claimed on goodwill arising out of amalgamation under the existing provision of the Income ... section 49(1)(iii)(e), Explanation 7 to section 43(1), Explanation 2(b) to section 43(6)(c) and section 55(2)(a)(ii) to hold that no depreciation could be allowed on goodwill arising in a tax-neutral amalgamation on the footing that there was no cost

ACIT Central Circle 1(3), Ahmedabad vs. Unicorn Packaging LLP, Ahmedabad

In the result, this appeal of the Revenue is, accordingly, stands dismissed

ITA 893/AHD/2025[2016-17]Status: DisposedITAT Ahmedabad25 Feb 2026AY 2016-17

Bench: Shri Sanjay Garg & Shri Narendra Prasad Sinhaआयकर अपील सं/ िनधा"रण वष"/ Sl. Appeal(S) By :

For Appellant: Shri Aseem L. Thakkar, ARFor Respondent: Shri Alpesh Parmar, CIT-DR
Section 32(1)Section 43(1)Section 43(6)(c)Section 49(1)(iii)Section 55(2)(a)

section 49(1)(iii)(e), Explanation 7 to section 43(1) and/or Explanation 2(b) to section 43(6)(c) and section 55(2)(a)(ii) which established that Depreciation cannot be claimed on goodwill arising out of amalgamation under the existing provision of the Income ... section 49(1)(iii)(e), Explanation 7 to section 43(1), Explanation 2(b) to section 43(6)(c) and section 55(2)(a)(ii) to hold that no depreciation could be allowed on goodwill arising in a tax-neutral amalgamation on the footing that there was no cost

Dosti Realty Limited, Mumbai vs. DCIT, Circle-1(1)(1), Mumbai

In the result appeal filed by the assessee stands partly allowed

ITA 6129/MUM/2024[2017-18]Status: DisposedITAT Mumbai28 Oct 2025AY 2017-18

Bench: Smt. Beena Pillai () & Shri Arun Khodpia ()

Section 115JSection 14ASection 37(1)

case of goodwill arising out of amalgamation, the cost in the hands of target company would be NIL by virtue of section 55(2) (a) (ii) and, accordingly, the cost would be NIL in the hands of acquirer-company. It is pertinent to note that decisions favouring the proposition ... section 49(1)(iii)(e), Explanation 7 to section 43(1)and/or Explanation 2(b) to section 43(6)(c) and section 55(2)(a)(ii) were not referred.. 8. Generally, when someone acquires a business and purchase consideration paid for the business is more than the net assets

Sagarlaxmi Agriseeds Private Limited, Ahmedabad vs. The ACIT, Circle-4(1)(1), Ahmedabad

In the result, appeal of the assessee stands allowed

ITA 1918/AHD/2024[2017-18]Status: DisposedITAT Ahmedabad05 Aug 2025AY 2017-18

Bench: S/Shri Sanjay Garg & Narendra Prasad Sinhaassessment Year : 2017-18 Sagarlaxmi Agriseeds Pvt Ltd Acit, Cir.4(1)(1) 206, Ashwamegh Avenue Vs Ahmedabad. Opp: Mithakhali Garden Navrangpura Ahmedabad. Pan : Aawcs 7561 F (Respondent) (Appellant) Assessee By : Shri Deepak R. Shah, Ar Revenue By : Shri Dharnidas V.S., Sr.Dr सुनवाई की तारीख/Date Of Hearing : 15/05/2025 घोषणा की तारीख /Date Of Pronouncement: 05/08/2025 आदेश/O R D E R

For Appellant: Shri Deepak R. Shah, ARFor Respondent: Shri Dharnidas V.S., Sr.DR
Section 143(1)Section 143(2)Section 143(3)Section 250Section 32

further, referring to the 6th proviso to section 32(1) of the Income Tax Act, ( in short, “the Act”) read with section 55(2)(a)(ii) of the Act, observed that before it’s succession to the assessee- company, the amount of goodwill in the books of the proprietorship concern

Asstt. Commissioner of Income-Tax, Circle-2(1)(1), Ahmedabad vs. Mcfills Enterprises Private Limited, Ahmedabad

In the result, ITA No. 401/Ahd/2022 is partly allowed and ITA 402/Ahd/2022 is dismissed

ITA 402/AHD/2022[2018-19]Status: DisposedITAT Ahmedabad04 Jul 2025AY 2018-19

Bench: Dr. Brr Kumar & Ms. Suchitra Kambleita Nos. 401 & 402/Ahd/2022 Assessment Year 2017-18 & 2018-19

For Appellant: Shri Tushar Hemani, Sr. A.R. &For Respondent: Shri Prathvi Raj Meena, CIT-D.R
Section 142(1)Section 143(1)Section 143(2)Section 2Section 2(18)Section 32(1)Section 36(1)(va)Section 37(1)Section 43(1)Section 43(6)

Explanation I.T.A Nos. 401 & 402/Ahd/2022 McFills Enterprises Pvt. Ltd., A.Y. 2017-18 & 2018-19 2(b) to section 43(6)(c) and section 55(2)(a)(ii) of the Act to the present case. The ld. D.R. relied upon the decision of the Tribunal in case of United Brewery

Asstt. Commissioner of Income-Tax, Circle-2(1)(1), Ahmedabad vs. Mcfills Enterprises Private Limited, Ahmedabad

In the result, ITA No. 401/Ahd/2022 is partly allowed and ITA 402/Ahd/2022 is dismissed

ITA 401/AHD/2022[2017-18]Status: DisposedITAT Ahmedabad04 Jul 2025AY 2017-18

Bench: Dr. Brr Kumar & Ms. Suchitra Kambleita Nos. 401 & 402/Ahd/2022 Assessment Year 2017-18 & 2018-19

For Appellant: Shri Tushar Hemani, Sr. A.R. &For Respondent: Shri Prathvi Raj Meena, CIT-D.R
Section 142(1)Section 143(1)Section 143(2)Section 2Section 2(18)Section 32(1)Section 36(1)(va)Section 37(1)Section 43(1)Section 43(6)

Explanation I.T.A Nos. 401 & 402/Ahd/2022 McFills Enterprises Pvt. Ltd., A.Y. 2017-18 & 2018-19 2(b) to section 43(6)(c) and section 55(2)(a)(ii) of the Act to the present case. The ld. D.R. relied upon the decision of the Tribunal in case of United Brewery

Assistant Commissioner of Income Tax, Circle 1, Jodhpur vs. Suncity Metals and Tubes Pvt. Ltd., Jodhpur

In the result, the revenue appeal is dismissed

ITA 267/JODH/2024[2020-21]Status: DisposedITAT Jodhpur24 Jun 2025AY 2020-21

Bench: Dr. Mitha Lal Meena, HonʼBle & Dr. S. Seethalakshmi, Hon'Ble

Section 32(1)Section 32(1)(ii)Section 43(1)Section 55(2)(a)

hands of resulting company shall be deemed to be cost for the previous owner acquired it i.e. Nil in accordance with section 55(2)(a)(ii) r.w.s. 491 1)(iii) (e) r.w.s. 47(vi) (vib). 5. Whether the Id. CIT(A) has erred in fact and law by not appreciating

Rexel India Private Limited, Pune vs. Deputy Commissioner of Income Tax, Pune

In the result, appeal of the assessee is partly allowed for statistical

ITA 981/PUN/2024[AY 2016-17]Status: DisposedITAT Pune05 May 2025
Section 143(2)Section 32(1)Section 43(1)Section 43(6)

present case. 25. As regards the reliance placed by the Revenue on the provisions of Section 49(1)(iii)(e) and Section 55(2)(a)(ii) of the Act, it is pertinent to note that these provisions form part of the Chapter dealing with "Capital Gains" and Section

The ITO, Ward-3(3)(12), Ahmedabad vs. Shri Cawas Darasha Karaka, Ahmedabad

In the result, the appeal of the Revenue is dismissed

ITA 499/AHD/2018[2013-14]Status: DisposedITAT Ahmedabad08 Apr 2025AY 2013-14

Bench: Dr. B.R.R. Kumar, Vice-Ms. Suchitra Kamble

For Appellant: Shri Tushar Hemani, Sr. Advocate &For Respondent: Adjournment application filed
Section 143(3)Section 250Section 48Section 49(1)Section 55(2)(a)Section 69A

erred in law and on facts in deleting the addition of Rs.4,40,00,000/- without appreciating the provisions of section 55(2)(a)(ii) of the Act. ITA No. 499/Ahd/2018 ITO Vs. Shri Cawas Darasha Karaka Asst. Year: 2013-14 -2- 2. The Ld.CIT(A) has erred ... assessee as per the terms and conditions of the registered lease deed of 1932 and therefore in accordance with the provision of section 55(2)(a)(ii) of the Act, the cost of acquisition has to be taken at NIL. 2. In para 3.3 (page

Dow Chemical International Private Limited, Thane vs. Deputy Commissioner of Income Tax - 14(1)(2), Mumbai

ITA 3772/MUM/2023[2016-17]Status: DisposedITAT Mumbai25 Nov 2024AY 2016-17

Bench: Shri Narendra Kumar Billaiyashri Sandeep Singh Karhail

For Appellant: Shri Rajan VoraFor Respondent: Ms. Rajeshwari Menon, Sr. AR /
Section 142(1)Section 143(2)Section 143(3)Section 250Section 32

IN THE INCOME TAX APPELLATE TRIBUNAL “D” BENCH, MUMBAI BEFORE SHRI NARENDRA KUMAR BILLAIYA, ACCOUNTANT MEMBER SHRI SANDEEP SINGH KARHAIL

Dow Chemicals International Private Limited, Mumbai vs. Deputy Commissioner of Income Ta-14(1)(2), Mumbai

ITA 1200/MUM/2023[2018-2019]Status: DisposedITAT Mumbai25 Nov 2024AY 2018-2019

Bench: Shri Narendra Kumar Billaiyashri Sandeep Singh Karhail

For Appellant: Shri Rajan VoraFor Respondent: Ms. Rajeshwari Menon, Sr. AR /
Section 142(1)Section 143(2)Section 143(3)Section 250Section 32

IN THE INCOME TAX APPELLATE TRIBUNAL “D” BENCH, MUMBAI BEFORE SHRI NARENDRA KUMAR BILLAIYA, ACCOUNTANT MEMBER SHRI SANDEEP SINGH KARHAIL

The Dy. Commissioner of Income Tax Circle-4(1)(1), Ahmedabad vs. Suzlon Energy Ltd., Ahmedabad

In the result the Ground Nos

ITA 303/AHD/2023[2017-18]Status: DisposedITAT Ahmedabad12 Nov 2024AY 2017-18

Bench: Shri T.R. SENTHIL KUMAR (Judicial Member), Shri Makarand Vasant Mahadeokar (Accountant Member)

Section 115JSection 143(3)Section 14A

section 49(1)(iii)(e). Explanation 7 to section 43(1) and/or Explanation 2(b) to section 43(6)(c) and section 55(2)(a)(ii) have already been discussed and established that Depreciation cannot be claimed on goodwill arising out of amalgamation under the existing provisions of the Income

The Dy. Commissioner of Income Tax Circle-4(1)(1), Ahmedabad vs. Suzlon Energy Ltd., Ahmedabad

In the result the Ground Nos

ITA 302/AHD/2023[2016-17]Status: DisposedITAT Ahmedabad12 Nov 2024AY 2016-17

Bench: Shri T.R. SENTHIL KUMAR (Judicial Member), Shri Makarand Vasant Mahadeokar (Accountant Member)

Section 115JSection 143(3)Section 14A

section 49(1)(iii)(e). Explanation 7 to section 43(1) and/or Explanation 2(b) to section 43(6)(c) and section 55(2)(a)(ii) have already been discussed and established that Depreciation cannot be claimed on goodwill arising out of amalgamation under the existing provisions of the Income

Suzlon Energy Ltd., Ahmedabad vs. The Dy. Commissioner of Income Tax Circle-4(1)(1), Ahmedabad

In the result the Ground Nos

ITA 199/AHD/2023[2017-18]Status: DisposedITAT Ahmedabad12 Nov 2024AY 2017-18

Bench: Shri T.R. SENTHIL KUMAR (Judicial Member), Shri Makarand Vasant Mahadeokar (Accountant Member)

Section 115JSection 143(3)Section 14A

section 49(1)(iii)(e). Explanation 7 to section 43(1) and/or Explanation 2(b) to section 43(6)(c) and section 55(2)(a)(ii) have already been discussed and established that Depreciation cannot be claimed on goodwill arising out of amalgamation under the existing provisions of the Income

Suzlon Energy Ltd., Ahmedabad vs. The Dy. Commissioner of Income Tax Circle-4(1)(1), Ahmedabad

In the result the Ground Nos

ITA 198/AHD/2023[2016-17]Status: DisposedITAT Ahmedabad12 Nov 2024AY 2016-17

Bench: Shri T.R. SENTHIL KUMAR (Judicial Member), Shri Makarand Vasant Mahadeokar (Accountant Member)

Section 115JSection 143(3)Section 14A

section 49(1)(iii)(e). Explanation 7 to section 43(1) and/or Explanation 2(b) to section 43(6)(c) and section 55(2)(a)(ii) have already been discussed and established that Depreciation cannot be claimed on goodwill arising out of amalgamation under the existing provisions of the Income

ACIT, Circle-1(1)(1), Ahmedabad, Vejalpur vs. Aia Engineering Limited, Ahmedabad

In the result, the appeal filed by the Revenue is dismissed, whereas the appeal filed by the assessee is allowed

ITA 532/AHD/2024[2016-17]Status: DisposedITAT Ahmedabad21 Oct 2024AY 2016-17

Bench: Mrs. Annapurna Gupta & Shri T.R. Senthil Kumarआयकर अपील सं / Ita No. 397/Ahd/2024 िनधा"रण वष"/Assessment Year: 2016-17 बनाम Aia Engineering Limited, Dcit Vs. 115, Gvmm Estate, Odhav Road, Circle-1(1)(1), Odhav, Ahmedabad-382415 Ahmedabad Pan : Aabca 2777 J आयकर अपील सं / Ita No. 532/Ahd/2024 िनधा"रणवष"/Assessment Year: 2016-17 बनाम Aia Engineering Limited, Acit, Vs. 115, Gvmm Estate, Odhav Road, Circle-1(1)(1), Odhav, Ahmedabad-382415 Ahmedabad Pan : Aabca 2777 J अपीलाथ" अपीलाथ"/ (Appellant) अपीलाथ" अपीलाथ" "" "" यथ" "" "" यथ" यथ"/ (Respondent) यथ" िनधा"रती की ओर से / Assessee By : Shri Tushar Hemani, Sr. Advocate & Shri Parimalsinh B. Parmar, Ar ""थ" की ओर से / Revenue By : Shri Pratik Sharma, Sr Dr & Shri Sudhendu Das, Cit-Dr तारीख/Date Of Hearing : 09.10.2024 सुनवाई क" क" तारीख सुनवाई सुनवाई सुनवाई क" क" तारीख तारीख घोषणा क" क" तारीख तारीख /Date Of Pronouncement: 21.10.2024 घोषणा घोषणा घोषणा क" क" तारीख तारीख आदेश आदेश/O R D E R आदेश आदेश

For Appellant: Shri Tushar Hemani, Sr. Advocate &For Respondent: Shri Pratik Sharma, Sr DR &
Section 154Section 250Section 32

proviso to Section 32(1), (ii) Explanation 7 to Section 43(1), (iii) Explanation 2(b) to Section 43(6)(c), (iv) Section 55(2)(a)(ii) and (v) Section 49(1)(iii)(e) relied upon by the Assessing Officer for disallowing the claim of depreciation related to assets transferred ... proviso to Section 32(1), (ii) Explanation 7 to Section 43(1), (iii) Explanation 2(b) to Section 43(6)(c), (iv) Section 55(2)(a)(ii) and (v) Section 49(1)(iii)(e), as noted above, the assessee was not entitled to any depreciation on the same. AIA Engineering