Depreciation u/s 32

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Mihir Kothari (Querist)

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)

14 March 2014 dep is allowed on goodwill as per recent judgements delivered.

Bhaskaran Chackrapani Warrier

Bhaskaran Chackrapani Warrier (Expert)

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)

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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