Goodwill is Eligible For Depreciation Under Income Tax Act: ITAT Delhi

In the case of CLC & Sons Pvt. Ltd vs. ACIT, ITAT Delhi) (Special Bench) has held that:

Goodwill is an intangible asset. It falls under the expression “any other business or commercial rights of similar nature” and is eligible for depreciation u/s 32(1)(ii) of the Act. The question whether when a firm has been succeeded by a company and net assets of the firm have vested in the company, there is any transfer of goodwill in the real sense and whether the valuation of goodwill done by the assessee is erroneous has to be decided by the Division Bench.

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