|Income Tax Appellate Tribunal
Depreciation on Demerger Goodwill Allowed; Section 14A Disallowance Needs Recorded Dissatisfaction : ITAT Kolkata
The ITAT Kolkata held that depreciation can be claimed on goodwill/brands acquired in a demerger under Section 32 of the Income Tax Act, and that a disallowance under Section 14A requires the Assessing Officer to record dissatisfaction with the taxpayer's apportionment. The decision impacts companies undertaking demergers seeking to amortise intangible assets and clarifies the procedural requirement for Section 14A disallowances.