Ammortization of goodwill

This query is : Resolved

jinkesh jain (Querist)
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06 September 2010 is ammortization of goodwill a deductible business expenditure?
and what difference would it make if its self generated goodwill and not purchased goodwill??

CA. Bikash Bogi

CA. Bikash Bogi (Expert)
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12 September 2010 If goodwill is purchased, then it will take the charector of intangible assets, eligible for depreciation/ amortisation.

however, in case of self generaed goodwill, the cost is nil. Logically, notional amortisation not permitted as per law.

jinkesh jain

jinkesh jain (Querist)
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14 September 2010 But section 2(11) of IT Act gives list of asset(tangible and intangible) and it doesnt cover goodwill...whether self generated or acquired. so what would be the treatment