THYSSENKRUPP ELEVATOR (INDIA) (P) LTD. Vs. ASSISTANT COMMISSIONER OF INCOME TAX
LAWS(IT)-2014-8-1
INCOME TAX APPELLATE TRIBUNAL
Decided on August 29,2014

Thyssenkrupp Elevator (India) (P) Ltd. Appellant
VERSUS
ASSISTANT COMMISSIONER OF INCOME TAX Respondents

JUDGEMENT

A.T.Varkey, Member (J) - (1.) THIS appeal is preferred by the assessee against the order of the learned CIT(A) -XIX, New Delhi, dt. 6th Nov., 2007 for the asst. yr. 2003 -04. The grounds of appeal raised in the present appeal by the assessee before us are as follows: "1. That the order of learned CIT(A) is bad both in laws and on facts of the case.
(2.) THAT the learned CIT(A) without appreciating the facts erroneously confirmed disallowance of claim of depreciation of Rs. 2,29,34,250 on intangible assets. That the learned CIT(A) has made erroneous observations on facts and wrongly held that consideration paid to acquire rights under the contract did not represent depreciable intangible asset, in terms of s. 32(1)(ii) of the Act." 2. The assessee has also raised an additional ground before us for the first time as below: "That on the facts and in the circumstances of the case, depreciation under s. 32(1)(ii) may be allowed on the amount of Rs. 1,85,44,612 allocated by the appellant in its accounts towards 'goodwill' as part of consideration to M/s. ECE Industries Ltd. together with the latter's 'business and commercial' rights under the agreement dt. 16th Oct., 2002." 3. The assessee vide its application for additional ground made under r. 11 of ITAT Rules, 1963, has sought to claim depreciation on 'goodwill' in terms of s. 32(1)(ii) of Act. Since this ground has been raised by the assessee by way of an additional ground, before dealing with this matter on merits, it is imminent for us to dispose of this application regarding maintainability of 'additional grounds' raised by the assessee.
(3.) BRIEF facts relevant to the issue under consideration are -The assessee is a private limited company incorporated on 1st Feb., 1990. During the relevant year, the assessee acquired the running business in terms of 'undertaking sale agreement' dt. 16th Oct., 2002 (hereinafter referred to as the 'Agreement') of M/s. ECE Industries Ltd. having its registered office at New Delhi. The assessee had acquired the "Elevator Division" business of ECE Industries Ltd. which comprised of marketing, selling, erection, installation, commissioning, service. repair, maintenance and modernization including major repairs of products on slump basis.;


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