Excess payment over net book value in amalgamation is goodwill hence eligible for depreciation u/s. 32(1)(ii)

ACIT Vs FLSmidth Private Limited (ITAT Chennai) ITAT Chennai held that the excess payment over the net book value of assets and liabilities acquired on account of amalgamation is in the nature of ‘goodwill’ and is eligible for depreciation u/s.32(1)(ii) of the Income Tax Act. Facts- The assessee is a member of the FLSmidth Group and is engaged in the manufacture and supply of machinery, parts and supervision of erection and commissioning services to cement / minerals industries among other activities. The company has three segments, namely, project segment, engineering segment and financi...