Toyo Engineering India Limited v. The Dy. Commissioner Of Income Tax, Range 10(3

IN THE HIGH COURT OF JUDICATURE AT BOMBAY ORDINARY ORIGINAL CIVIL JURISDICTION INCOME TAX APPEAL (L) NO.1330 OF 2012 Toyo Engineering India Limited..Appellant.Versus The Dy. Commissioner of Income Tax, Range 10(3) ..Respondent. Mr.Prakash Shah with Mr.Jas Sanghavi i/by PDS Legal for the appellant.Mr.Arvind Pinto for the respondent. CORAM : J.P. Devadhar &M.S. Sanklecha, JJ. P.C. : DATE : 30[th] October 2012 1.Whether the Income Tax Appellate Tribunal was justified in disallowing the depreciation on goodwill under Section 32(1)(ii) of the Income Tax Act, 1961 is the basic question raised in this appeal. 2.The Apex Court in the case of Commissioner of Income Tax V/s. Smifs Securities Limited reported in 348 ITR 302 (S.C.) has held that the depreciation would be allowable on goodwill. In this view of the matter, the impugned order of the Income Tax Appellate Tribunal is quashed and set aside and the matter is restored to the file of the Income Tax Appellate Tribunal for fresh decision on merits and in accordance with law. 3.The appeal is accordingly disposed of in above terms with no order as to costs. (M.S. Sanklecha, J.) (J.P. Devadhar, J.)