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IN THE HIGH COURT OF JUDICATURE AT BOMBAY
ALOK ARADHE, CJ., M.S.KARNIK, J.
Technova Imaging Systems Limited – Appellant
Versus
Deputy Commissioner Of Income Tax – Respondent
JUDGMENT (PER M.S.KARNIK, J.) :
1. This appeal under Section 260A of the Income Tax Act, 1961 (‘IT Act’, for short) is against the order of the Income Tax Appellate Tribunal, (‘the Tribunal’, for short), Mumbai Bench, ‘D’ Mumbai dated 10/01/2003. The appeal was admitted on 19/10/2004 on the following substantial question of law :
“Whether on the facts and in the circumstances of the case, the Tribunal was justified in law in holding that in view of insertion of section 72A in the Income-tax Act, 1961, the appellant (being the amalgamated company) not having obtained approval of the Central Government was not entitled to adjust the written down value of the assets of the amalgamating companies on the basis depreciation actually allowed to them and to claim depreciation on such adjusted written down value of the assets of the amalgamating companies?"
2. Some few facts are relevant to answer the substantial question of law which arises in this appeal. The appellant is a company incorporated under the provisions of the Companies Act, 1956 and is engaged in the business of manufacture and sale of aluminium based presensitised lithographic plates, chemicals and polyester based reprographic
The court held that the appellant was entitled to adjust the written down value of assets based on unabsorbed depreciation without needing Central Government approval under Section 72A, as it was not....
Goodwill arising from amalgamation qualifies as intangible asset eligible for depreciation u/s 32 on actual cost to amalgamated company for AY 2020-21; no S.14A disallowance without exempt income.
The court determined that forgiven interest prior to amalgamation constituted income assessable under S.41(1) and should be factored into loss computations under S.72A.
Depreciation allowance under the Income Tax Act cannot be granted by the Income Tax Officer unless expressly claimed by the assessee, reinforcing the principle that taxpayer rights must be respected.
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