ITAT Delhi: Section 50C Inapplicable to Buyer in Slump Sale – Goodwill Depreciation Allowed, Non-Compete Fee Disallowed

Akorn India Pvt. Ltd. Vs DCIT (ITAT Delhi) ITAT Delhi: Section 50C Inapplicable to Buyer in Slump Sale – Goodwill Depreciation Allowed, Non-Compete Fee Disallowed Delhi ITAT dealt with depreciation on goodwill & non-compete fees arising from a slump purchase & AO’s use of section 50C to revalue land & building. Akorn India, incorporated in 2011, purchased the manufacturing undertaking of Kilitch Drugs (India) Ltd. on 29-02-2012 for ₹281.28 crore. The book value of assets was ₹137.19 crore; the excess ₹144.09 crore was treated as goodwill, & ₹20 crore was paid under ...