High Court Rules on Goodwill as Expenditure, Allows Depreciation on Acquisition
2 months ago

High Court Rules on Goodwill as Expenditure, Allows Depreciation on Acquisition

Live Law  

The Delhi High Court has ruled that goodwill is not 'income' but rather 'expenditure' for acquisition of assets and therefore, an assessee is entitled to charge depreciation on the amount spent towards it. The court cited Commissioner of Income Tax, Kolkata v. Smifs Securities Ltd. (2012) to support its decision.

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History of this topic

ITAT Allows Depreciation Claim On Non Compete Fee, Deletes Penalty
4 months, 4 weeks ago

ITAT Allows Depreciation Claim On Non Compete Fee, Deletes Penalty

Live Law  

The Delhi Bench of Income Tax Appellate Tribunal has allowed the claim of depreciation on non-competing fees.The bench of Yogesh Kumar U.S. and Pradip Kumar Kedia has deleted the penalty imposed pursuant to the addition of Rs. 21,89,970 made on account of disallowance of depreciation on noncompeting fees.The assessment order came to be passed. The bench of Yogesh Kumar U.S. …

Unexplained Expenditure Addition Merely Based On CBIC Instruction Not Sustainable: Delhi High Court
7 months, 1 week ago

Unexplained Expenditure Addition Merely Based On CBIC Instruction Not Sustainable: Delhi High Court

Live Law  

The Delhi High Court has deleted the addition for unexplained expenditure, which was based on the instruction issued by the Central Board of Indirect Taxes and Customs.“Merely proceeding on the basis that CBIC is an apex body and therefore, information provided by it cannot be doubted, without even identifying or meaningfully analyzing such information, is wholly insufficient to. The Delhi …

Unexplained Expenditure Addition Merely Based On CBIC Instruction Not Sustainable: Delhi High Court
7 months, 1 week ago

Unexplained Expenditure Addition Merely Based On CBIC Instruction Not Sustainable: Delhi High Court

Live Law  

The Delhi High Court has deleted the addition for unexplained expenditure, which was based on the instruction issued by the Central Board of Indirect Taxes and Customs.“Merely proceeding on the basis that CBIC is an apex body and therefore, information provided by it cannot be doubted, without even identifying or meaningfully analyzing such information, is wholly insufficient to. The Delhi …

Once ITO Accepted Income Earned Which Is Totally Based Upon Depreciation Plus 15% Markup, There Is No Reason To Deny Cost: Delhi ITAT
9 months, 1 week ago

Once ITO Accepted Income Earned Which Is Totally Based Upon Depreciation Plus 15% Markup, There Is No Reason To Deny Cost: Delhi ITAT

Live Law  

Finding that the assessee had arrangement with its AE for billing cost plus 15%, which has been duly billed during the year and entire depreciation cost plus 15% has been billed to the AE, the New Delhi ITAT allowed the depreciation claimed by assessee. The Bench of Shamim Yahya and Challa Nagendra Prasad observed that “When the Revenue is accepting …

Subscription Fee Received By Deloitte Exempted From Tax On Principle Of Mutuality: Delhi High Court
1 year, 2 months ago

Subscription Fee Received By Deloitte Exempted From Tax On Principle Of Mutuality: Delhi High Court

Live Law  

The Delhi High Court has held that subscription fees received by Deloitte are exempted from tax on the principle of mutuality.The bench of Justice Rajiv Shakdher and Justice Girish Kathpalia has observed that the expression “mutuality” flows from the expression “mutual”, which indicates reciprocity of arrangement in which the concerned parties have reciprocal rights or understanding. The Delhi High Court …

Delhi High Court Allows Deduction To Hyatt Regency Towards Repair, Renovation, Refurbishment, Consultancy Expenses As Revenue Expenditure
1 year, 2 months ago

Delhi High Court Allows Deduction To Hyatt Regency Towards Repair, Renovation, Refurbishment, Consultancy Expenses As Revenue Expenditure

Live Law  

The Delhi High Court has allowed the income tax deduction to Hyatt Regency towards repair, renovation, refurbishment, and consultancy expenses as revenue expenditure.The bench of Justice Rajiv Shakdher and Justice Tara Vitasta Ganju has observed that ITAT rightly mentioned that if the owner of a building that is used for business incurs expenditure in the nature of current repairs and. …

Assessee Entitled To Claim Depreciation In Respect Of Assets On The Actual Cost Of Assets: Bombay High Court
1 year, 5 months ago

Assessee Entitled To Claim Depreciation In Respect Of Assets On The Actual Cost Of Assets: Bombay High Court

Live Law  

The Bombay High Court has held that the assessee is entitled to claim depreciation in respect of any assets based on the actual cost of the assets.The bench of Justice K.R. The Bombay High Court has held that the assessee is entitled to claim depreciation in respect of any assets based on the actual cost of the assets. Sathaye observed …

Once The Existence Of Goodwill Is Established, Depreciation On Goodwill Cannot Be Questioned: ITAT
1 year, 6 months ago

Once The Existence Of Goodwill Is Established, Depreciation On Goodwill Cannot Be Questioned: ITAT

Live Law  

The Hyderabad Bench of the Income Tax Appellate Tribunal has held that once the existence of goodwill is established, depreciation on goodwill cannot be questioned.The bench of K. Narasimha Chary and R.K. Panda has observed that the transfer of IP from Blujay India to Blujay UK cannot question the benefits accrued from the bundle of assets. In appeal, the CIT …

Department Can Bring Expenditure Incurred In Earlier Years To Be Taxed In Subsequent Years On Grounds Of Bogus Expenditure: ITAT
1 year, 7 months ago

Department Can Bring Expenditure Incurred In Earlier Years To Be Taxed In Subsequent Years On Grounds Of Bogus Expenditure: ITAT

Live Law  

The Delhi Bench of the Income Tax Appellate Tribunal has observed that the department can bring expenditures incurred in earlier years to be taxed in subsequent years on grounds of bogus expenditure.The bench of B. R. R. Kumar has observed that the department can bring the expenditure incurred in the earlier years to be taxed in the subsequent years if …

Tax Cases Weekly Round-Up: 6 November to 12 November 2022
2 years, 1 month ago

Tax Cases Weekly Round-Up: 6 November to 12 November 2022

Live Law  

Delhi High Court Expenses Towards Case Title: Commissioner of Income Tax versus Somnath Buildtech Pvt. Rajasthan High Court Case Title: Pooja Agarwal Versus Commissioner of Income Tax-1 The Rajasthan High Court has held that the Income Tax Appellate Tribunal is the last fact-finding authority and is bound to follow the directions issued by the High Court in pith and substance. …

Tax Cases Weekly Round-Up: 30 October To 5 November 2022
2 years, 1 month ago

Tax Cases Weekly Round-Up: 30 October To 5 November 2022

Live Law  

Supreme Court Industrial Townships Are "Local Areas" For Entry Tax Levy By States Though They Are Excluded From Municipalities : Supreme Court Case Title: OCL India Limited vs State of Orissa Citation: 2022 LiveLaw 911 The Supreme Court upheld States' power to impose entry tax from Industrial Township/Areas. Delhi High Court Case Title: Commissioner Of Income Tax Versus Daikin Shri …

Expenses Towards Advertisement, Brokerage And Commission, Incurred By A Real Estate Developer; Deductible As Revenue Expenditure: Delhi High Court
2 years, 1 month ago

Expenses Towards Advertisement, Brokerage And Commission, Incurred By A Real Estate Developer; Deductible As Revenue Expenditure: Delhi High Court

Live Law  

The Delhi High Court has ruled that The bench of Justices Manmohan and Manmeet Pritam Singh Arora observed that the dispute involving the year of deduction, which was sought to be postponed by the revenue department, was revenue neutral, having no tax affect and that it did not put the revenue department at any disadvantageous position. The Court noted that …

Delhi High Court Allows Depreciation Claim To Daikin For Goodwill On Exclusive Business Rights
2 years, 1 month ago

Delhi High Court Allows Depreciation Claim To Daikin For Goodwill On Exclusive Business Rights

Live Law  

The Delhi High Court while ruling in favour of the Daikin Shri Ram Aircon Pvt. Ltd. has held that the business rights acquired for valuable consideration constitute an intangible asset within the meaning of Section 32 of the Income Tax Act and depreciation is allowable.The division bench of Justice Manmohan and Justice Manmeet Pritam Singh Arora has observed that the …

Assessee Entitled To Additional Depreciation On The Power Plant And Installed Windmill: Delhi ITAT
2 years, 6 months ago

Assessee Entitled To Additional Depreciation On The Power Plant And Installed Windmill: Delhi ITAT

Live Law  

The Delhi Bench of the Income Tax Appellate Tribunal consisting of Yogesh Kumar U.S. and B.R.R. The CIT deleted the addition on account of depreciation made while calculating book profit under section 115JB of the Income Tax Act. The CIT upheld the action of the Assessing Officer in making an addition on account of additional depreciation under section 32 of …

Delhi High Court: Findings Of Fact Recorded By ITAT Not Perverse, Cannot Be Interfered Under Section 260A
2 years, 9 months ago

Delhi High Court: Findings Of Fact Recorded By ITAT Not Perverse, Cannot Be Interfered Under Section 260A

Live Law  

The Delhi High Court has ruled that in an appeal to the High Court under Section 260A of the Income Tax Act, 1961 there can be no interference with the finding of fact if it involves re-appreciation of the evidence. The counsel for the CIT before the Delhi High Court submitted that the ITAT had not considered the fact that …

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