ITAT Mumbai Upholds Depreciation on Goodwill Arising from Amalgamation

DCIT Vs Yola Stays Limited (ITAT Mumbai) The Income Tax Appellate Tribunal (ITAT), Mumbai Bench, has dismissed an appeal by the Deputy Commissioner of Income Tax (DCIT) against Yola Stays Limited, confirming that Goodwill arising from an amalgamation process is a depreciable intangible asset under Section 32(1)(ii) of the Income Tax Act, 1961. The Tribunal explicitly rejected the Revenue’s argument that the Goodwill amount should be disallowed because it was merely a representation of the non-depreciable appreciation in land value. The Disputed Depreciation Claim The assessee, Yola Stays...