Depreciation allowed in 1st Year cannot be disallowed in subsequent year(s) without change in facts

Bodal Chemicals Ltd. Vs ACIT (ITAT Ahmedabad)

Assessee was allowed for depreciation in respect of such goodwill in the 1^st year of amalgamation i.e. AY 2006-07. There was no action either under section 263 or 147 of the Act by the revenue. Therefore we can safely presume that the claim of the depreciation of the assessee in the 1^st year has attained finality. Admittedly the 1^st year is the base assessment year from where the issue of depreciation is emanating.

The question arises once

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