Section 32 of the Income-tax Act, 1961 - Depreciation - Allowance/Rate of (Goodwill)

IT : Where assessee claimed depreciation contending that retiring partners were paid their share of goodwill at time of retirement, in view of fact that no tangible or intangible asset was acquired on retirement of partners as nothing was paid in excess of amount due to partners in their capital account, assessee's claim was to be rejected
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[2015] 55 taxmann.com 381 (Mumbai - Trib.)
IN THE ITAT MUMBAI BENCH 'F'
Video Effects
v.
Income-tax Officer-11 (1) (4), Mumbai*
JOGINDER SINGH, JUDICIAL MEMBER
AND SANJAY ARORA, ACCOUNTANT MEMBER
IT APPEAL NO. 3928 (MUM.) OF 2008
[ASSESSMENT YEAR 2003-04]
DECEMBER  10, 2014
Section 32 of the Income-tax Act, 1961 - Depreciation - Allowance/Rate of (Goodwill) - Assessment year 2003-04 - Assessee was a partnership firm in business of supply of equipments for shooting and editing telefilms, etc. - During relevant year, two partners holding 20 per cent share each retired from firm - Assessee claimed depreciation contending that retiring partners were paid their share of goodwill at time of retirement - Whether since no tangible or intangible asset was acquired on retirement of partners as nothing was paid in excess of amount due to partners in their capital account, assessee's claim for depreciation was to be rejected - Held, yes [Para 4] [In favour of revenue]