Case Law Details
Vodafone India Services Pvt Ltd Vs DCIT (ITAT Mumbai)
ITAT Mumbai held the goodwill arising on business reorganization i.e. amalgamation, slump sale, demerger etc. is a depreciable intangible asset under section 32 of the Income Tax Act.
Facts- The assessee company M/s Vodafone India Services Pvt. Ltd. is engaged in the business of Information Technology Enabled Services (ITES) such as Call Centre.
Notably, TPO had made a transfer pricing adjustment of Rs.1397 crores on account of shortfall in price of shares issued to the AE and interest on deemed loan. Upon receipt of the said transfer pricing order, the AO passed a draft assessment order u/s 143(3)/144C(1) of the Act dated 22.03.2013. However, the transfer pricing proceedings were quashed by Hon’ble High Court.
AO accordingly framed the impugned final assessment order dated 05.12.2014 u/s 143(3)/144C(13) of the Act in which the total income was assessed at the same figure as returned by VISPL. According to the appellant however, the AO had declined to entertain the additional claim raised by it vide letter dated 14.03.2013 in the course of assessment regarding depreciation on goodwill acquired under slump sale of Call Centre Business of Vodafone Essar Gujarat Ltd.
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