Case Law Details
Aramark India Pvt. Ltd. Vs DCIT (ITAT Mumbai)
There is no dispute with regard to allowability of deprecation on goodwill, but when you compare the facts of the current year, the question of allowability of deprecation has to be examined, in the light of provision of section 32(1), where it mandates the block of assets should exists to claim depreciation. Since, goodwill is not treated as an asset in its books of accounts and also, the assessee is not getting any enduring benefit out of such goodwill, the question of allowing depreciation on such non existing asset does not arise. The Ld.AO as well the Ld.CIT(A), after considering relevant facts has rightly disallowed depreciation claimed on non-existing asset being goodwill.
FULL TEXT OF THE CESTAT JUDGEMENT
This appeal filed by the assessee is directed against the order of the Commissioner of Income Tax (Appeals)–16, Mumbai dated 25/01/2018 and it pertains to the Assessment Year 2012-13.
2. The assessee has raised the following grounds of appeal:-
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