M/s Shristi Infrastructure Development Corporation Ltd. Vs. DCIT

Parties Involved

Facts Summary

The assessee, M/s Shristi Infrastructure Development Corporation Ltd., is a limited company engaged in business. The company filed an income return for the assessment year 2016-17, declaring an income of ₹2,95,12,610/-. The case was selected for scrutiny under Computer Assisted Scrutiny Selection (CASS). The Assessing Officer disallowed depreciation on goodwill claimed by the assessee, which was recorded at ₹59,32,617/- on the Written Down Value (WDV) as on 1st April, 2015 of ₹2,37,30,469/-. The assessee appealed against this disallowance before the Commissioner of Income Tax (Appeals), but the appeal was dismissed. The assessee then appealed to the Income Tax Appellate Tribunal (ITAT).…

Legal Issues

• 1. Whether the learned CIT (A) erred in disallowing the claim at the rate of 25% on the Written-down value of goodwill.
• 2. Whether the assessee was entitled to claim depreciation on goodwill as per the provisions of the Income-tax Act, 1961.

Judgment Outcome

Decided in favour of Assessee.

Precedents Relied Upon

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