Anshul Speciality Molecules Private Limited Vs. DCIT Circle 1(1)(1), Mumbai

Parties Involved

Facts Summary

The assessee, Anshul Speciality Molecules Private Limited, is a company engaged in specialty chemicals. For the assessment year 2020-21, the assessee filed its return of income declaring a total income of Rs. 19,60,49,330/-. The return was processed, and the case was selected for complete scrutiny. During the assessment, it was noticed that the assessee had acquired a going concern manufacturing unit from M/s Anmol Antioxidants Pvt. Ltd. via a slump sale for Rs. 21,00,00,000/-. The assessee claimed depreciation on goodwill amounting to Rs. 1,22,44,409/-. The Assessing Officer disallowed this claim, which was upheld by the Commissioner of Income-tax (Appeals). The assessee then appealed to the Income Tax Appellate Tribunal.…

Legal Issues

• 1. Whether the disallowance of depreciation on goodwill by the Assessing Officer and CIT(A) was correct.

Judgment Outcome

Decided in favour of Assessee.

Precedents Relied Upon

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