Kovalam Resort Private Limited vs. DCIT
Case No: ITA No. 6580/Mum/2025, ITA No. 6578/Mum/2025, ITA No. 6579/Mum/2025
Court: Income Tax Appellate Tribunal, 'E' Bench, Mumbai
Date: 1/30/2026
Parties Involved
appellantKovalam Resort Private Limited
respondentDCIT
Facts Summary
The assessee, Kovalam Resort Private Limited, acquired the Kovalam hotel undertaking from M/s Hotel Leela Venture Ltd. as a going concern under a scheme sanctioned by the Hon’ble Bombay High Court for a lump sum consideration of Rs. 500 crores. The assessee claimed depreciation on the assets acquired by allocating the composite consideration to individual assets based on valuation reports. The Assessing Officer rejected the allocation and restricted depreciation by adopting the written down valu…
Decision in favour of
Partly Assessee / Partly Revenue
Legal Issues
- 1. Allowance of depreciation on assets acquired through slump sale
- 2. Allowance of depreciation on goodwill arising from the excess consideration
Precedents Relied Upon
5 precedents cited in this judgement.