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Income Tax - Depreciation on goodwill has been a matter of considerable debate. Although the Supreme Court, in its landmark judgment in the case of Smifs Securities, held that goodwill is an intangible asset within the meaning of section 32 of the Income-tax Act, 1961 (the Act) and depreciation on goodwill is allowable under the section, some judgment...
Read MoreIncome Tax - Block of Assets :-The expressions Assets and Blocks of Assets w.e.f. 1-4-1999 shall mean a group of assets falling within a class of assets comprising:–Tangible Assets being buildings, machinery, plant or furniture;Intangible Assets being knowhow, patents, copyrights, trademarks, licences, franchises or any other business or commercial ...
Read MoreIncome Tax - It is a well known and understood fact that land is not a depreciable asset. By its very definition, depreciation means decrease in the value of an asset through wear and tear, deterioration or obsolescence. While these implications easily apply to buildings or other structures built upon land, the land itself as an asset has no finite li...
Read MoreIncome Tax - The concept of merger and acquisition was not popular until the year 1988 in India. However, in the last five years merger and acquisition has emerged as a very important tool for growth of Indian corporates. Today, many companies are merging with each other in order to generate more revenues that the companies could have earned individua...
Read MoreIncome Tax - Ankita Agrawal Income Tax Act, 1961 is quite clear on the tax implications in the hand of purchaser and seller in case of amalgamation or demerger, but when it is a division purchase or slump purchase, there are no specific provisions in the Act in relation to purchaser. Section 50B of the Act clearly specifies […]...
Read MoreIncome Tax - The proviso to section 32 provides that the aggregate deduction, in respect of depreciation of buildings, machinery, plant or furniture, being tangible assets or know how, patents, copyrights, trademarks, licenses, franchises or any other business or commercial rights of similar nature, being intangible assets allowable to the predecessor...
Read MoreMahanadi Coalfields Ltd. Vs DCIT (ITAT Cuttack) - Lease hold rights are not eligible for depreciation u/s.32(1)(ii) of the Act considering it as intangible asset and, hence, dismiss this ground of appeal of the assessee....
Read MoreDCIT Vs. M/s. Ahmedabad Strips P. Ltd. (ITAT Ahmedabad) - There is no dispute with regard to the fact that creditors do fall within the category of specified persons contemplated in section 40A(2)(b) of the Act. Short question before us is, whether payment of interest at the rate of 18% to such persons on the loans availed from them is excessive or not, ha...
Read MorePearl Freight Services (P) Ltd. Vs. ACIT (ITAT Mumbai) - Where assessee claimed loss on sale of motor car, which was wrongly debited to P&L account, but there were other motor cars also existing in block of assets and the said block of asset of motor car had not ceased to exist, therefore, the assessee was entitled to depreciation under section 32 on the ...
Read MoreAshoka Infrastructure Ltd. Vs. Asst. CIT (ITAT Pune) - As assessee was not the owner of toll road, but had been given the right to develop, maintain and operate the toll road and to further collect the toll for the specified period, then this right was an intangible asset falling under section 32(1)(ii) and expenditure on development, construction and m...
Read MoreCIT Vs. Mehru Electricals & Mechanical Engineers (P) Ltd. (Rajasthan High Court) - As civil work and electric generator are taken to be a part of windmill, rate as is applicable for the depreciation for windmill would apply to the civil foundation and electric turbine generator also....
Read MoreI.T.A. No. 496/Delhi/2014 - (15/04/2015) - A reading of the agreement between STL and the assessee clarifies that a specific amount, i.e., Rs.9 Crores was paid by the assessee to the transferor who owned commercial rights towards the network and the facilities. The consideration was a specific value but for which the network would not have b...
Read MoreNotification No. 43/2014-Income Tax - (16/09/2014) - Notification No. 43/2014-Income Tax S.O. 2399(E).—In exercise of the powers conferred by Section 295 read with Section 32 of the Income-tax Act, 1961 (43 of 1961), the Central Board of Direct Taxes hereby makes the following rules further to amend the Income-tax Rules, 1962, namely:— 1. (1) Thes...
Read MoreTrade Circular No. 1 T of 2010 - (05/01/2010) - In view of this situation, it is necessary that the procedure for the issuing of such certificates should be standardized. Such certificates are very often required to be produced before various government authorities, local bodies or other bodies etc. for the purpose of tender renewal of licenses e...
Read MoreCircular : No. 29-D(XIX-14) [F. No. 45/239/65-ITJ], - (31/08/1965) - Numerous instances have come to the notice of the Board where assessee’s claim for depreciation duly shown in the return was not considered by the Income-tax Officer because books of account produced were not properly maintained and it was necessary to estimate profits by invoking the proviso to ...
Read MoreMahanadi Coalfields Ltd. Vs DCIT (ITAT Cuttack) -
DCIT Vs. M/s. Ahmedabad Strips P. Ltd. (ITAT Ahmedabad) -
Pearl Freight Services (P) Ltd. Vs. ACIT (ITAT Mumbai) -
Ashoka Infrastructure Ltd. Vs. Asst. CIT (ITAT Pune) -
CIT Vs. Mehru Electricals & Mechanical Engineers (P) Ltd. (Rajasthan High Court) -
Commissioner of Income tax Vs Rajasthan and Gujarat Charitable Foundation Poona (Supreme Court of India) -
The Pr. Commissioner of Income- Tax Vs. M/s. Larsen and Toubro Ltd. (Bombay High Court) -
Damodar Valley Corporation Vs. Dy. CIT (ITAT Kolkata) -
D.C.I.T. Vs. M/s. One Ad Display Pvt. Ltd. (ITAT Kolkata) -
