Itxa/2077/2011 Of The Commissioner Of Income Tax- 2 Mumbai v. Aditya Birla Finance Ltd

sas IN THE HIGH COURT OF JUDICATURE AT BOMBAY ORDINARY ORIGINAL CIVIL JURISDICTION INCOME TAX APPEAL NO.2077 OF 2011INCOME TAX APPEAL NO.2078 OF 2011 The Commissioner of Income Tax-2, Mumbai ..Appellant. V/s. M/s. Aditya Birla Finance Ltd. (previously known as Birla Global Finance Co. Ltd.)..Respondent. Mr. Vimal Gupta, Senior Advocate with Padma Divakar for the appellant. Mr. Nitesh Joshi with A.K. Jasani for the respondent. CORAM : J.P. DEVADHAR AND M.S. SANKLECHA, JJ. DATED : 15TH MARCH, 2013 P.C. :- 1.In these appeals by the revenue for the assessment years 2001-02 and 2002-03, the following common question of law has been raised for our consideration :- “ Whether the Tribunal was justified in allowing depreciation on intangible assets viz. business and commercial brand equity even though such asset is not a depreciable asset within th emeaning of section 32(1)(ii) of the income Tax Act ? ” 2.Before the Tribunal, the revenue had contended that the commercial brand equity was in the nature of goodwill and thus no depreciation was allowable. The Apex Court in the matter of CIT V/s. Smifs Securities Ltd. reported in [2012] 348 ITR 302 (SC) has held that even goodwill is entitled to depreciation. In this view of the matter, as the issue is now covered by the decision of the Apex Court in the matter of Smifs Securities Ltd. (supra), we see no reason to entertain the propose question of law. 3.Accordingly, the appeal is dismissed with no order as to costs. (M.S. SANKLECHA, J.) (J.P. DEVADHAR, J.)