Depreciation on Slump-Sale Goodwill Allowed – Goodwill held as Bundle of Commercial Rights; FA 2021 Amendment not Applicable to AY 2018-19

Trent Limited Vs DCIT (ITAT Mumbai) Depreciation on Slump-Sale Goodwill Allowed – Goodwill held as Bundle of Commercial Rights; FA 2021 Amendment not Applicable to AY 2018-19 The ITAT Mumbai allowed the assessee’s appeal and held that depreciation u/s 32 is allowable on goodwill arising from acquisition of a business undertaking through slump sale. The assessee had acquired the “value fashion” business from a group entity for ₹87.82 crore and claimed depreciation on goodwill of about ₹44.05 crore allocated through purchase price allocation. The AO and CIT(A) disallowed depreciation...