Goodwill created upon amalgamation is intangible asset eligible for Section 32 depreciation

Olympic Décor LLP Vs PCIT (ITAT Ahmedabad)

ITAT Ahmedabad held that goodwill arose from the excess of consideration over the net value of tangible assets transferred in amalgamation and was therefore a valid intangible asset eligible for depreciation under section 32(1)(ii).

Facts- Post scrutiny assessment, PCIT invoked jurisdiction u/s. 263 of the Income Tax Act and observed that the AO had failed to examine the claim of depreciation on goodwill u/s. 32(1)(ii), though it had been disallowed in earlier years (A.Y. 2016–17) and was claimed again in the yea

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