Depreciation disallowed as creation of goodwill in intra-group merger was colourable transaction

Advertisement Aptara Technologies Private Limited Vs DCIT (ITAT Pune) ITAT Pune held that creation of artificial intangible asset i.e. goodwill in intra-group merger is merely a colourable transaction out between the Holding Company and the subsidiary company. Accordingly, depreciation claimed thereon deserves to be disallowed. Facts- During the course of assessment proceedings, AO observed that there is an amalgamation in the nature of merger with MLPL (Transferor company) and Assessee-ATPL (Transferee company). As per the scheme of amalgamation, the shareholders of MLPL got 60.72 Equity ...