Depreciation u/s 32

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Mihir Kothari (Querist)
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14 March 2014 Why is goodwill not considered as a capital asset or rather an intangible asset eligible for depreciation u/s 32 @ 25 % ?

CS,CA F,Numrologi TusharSampat

CS,CA F,Numrologi TusharSampat (Expert)
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14 March 2014 dep is allowed on goodwill as per recent judgements delivered.

Bhaskaran Chackrapani Warrier

Bhaskaran Chackrapani Warrier (Expert)
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14 March 2014 Goodwill is an intangible asset and can be depreciated.

Citation :- CIT Vs. Smifs Securities Ltd [2012] 348 ITR 302 (SC).

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Akash Barman

Akash Barman (Expert)
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14 March 2014 Dear Mihir,
Goodwill are in the nature of two types-1)Self-generated goodwill which is not of capital nature. and 2) Purchased Goodwill .

Goodwill under AS-26, is a deliberate purchased goodwill, means the person has valued his goodwill of the business and charged the money accordingly. SUCH GOODWILL SHALL BE WRITTEN OF OVER A PERIOD OF 10 YEARS. (MAX 10 YEARS)

in your case, if it the goodwill under AS-26, then goodwill can be written off and Depreciation u/s 32 can be enjoyed

Thanks

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