Promotors good will be claimed as deduction u/s 32

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Querist : Anonymous

Querist : Anonymous (Querist)

20 January 2013 Dear sir,

can the promoters good will be claimed as deduction u/s 32 of income tax act.

CA PARAS BAFNA

CA PARAS BAFNA (Expert)
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20 January 2013 SECTION 32, IS A SPECIFIC SECTION FOR DEPRECIATION. PROMOTERS GOODWILL CAN NOT BE CLAIMED U/S 32 AS IT IS NOT AN ITEM OF DEPRECIATION.
.

Bhaskaran Chackrapani Warrier

Bhaskaran Chackrapani Warrier (Expert)
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20 January 2013 No. Goodwill can't be depreciated.
Citation :- Bharatbhai J Vyas vs. ITO 97 ITD 248.

Querist : Anonymous

Querist : Anonymous (Querist)

20 January 2013 Dear sir,

Actual situation is,

Mr.A has incorporated X pvt ltd. with the promoters Mr.B and Mr.c and issued shares for consideration other than cash(on par),& passed the entry as,

G.W a/c dr.
To E.S capital a/c

dear CHACKRAPANI sir by considering the s.c judgement in the following case please express your views,

case : cit vs smifs securities ltd s.c 2012

and if your views are different please qoute as per income tax act case if any.

thanks.

Bhaskaran Chackrapani Warrier

Bhaskaran Chackrapani Warrier (Expert)
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21 January 2013 Facts are distinguishable. Your's is incorporation and supreme court ruling is on mergers and acquisitions.
Any way thanks for updation, though I have read Techno Shares and Stocks Limited's case in 327 ITR 323 (SC).

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