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Depreciation allowable on goodwill

Depreciation allowable on goodwill

This article summarizes a recent important decision of the Delhi High Court (the “DHC”) in the case of CIT v. Hindustan Coca Cola Beverages Pvt. Ltd., Income Tax Appeal No.1391/2010, (Order dated 14 January 2011). The DHC has held that the true basis for depreciation allowance is the actual character of the assets on which it is claimed. The nomenclature given to the entries in the books of accounts is not relevant for ascertaining the real nature of the transaction.

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