Depreciation allowable on difference between slump sale consideration and value of tangible assets

Kovalam Resort Private Limited Vs DCIT (ITAT Mumbai)

ITAT Mumbai held that balancing figure between the slump sale consideration and the value of identifiable tangible assets represents goodwill or commercial rights in the nature of an intangible asset, and depreciation thereon is allowable under section 32(1)(ii) of the Income Tax Act.

Facts- The assessee is a company engaged in the business of owning and operating a five-star hotel at Kovalam Beach, Thiruvananthapuram, known as “Kovalam Leela Raviz Hotel”. The assessee acquired the hotel undertaking o

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