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| The Tax Publishers2021 TaxPub(DT) 1620 (Ahd-Trib) INCOME TAX ACT, 1961
Section 250(6)
Where CIT(A) had not made any discussion to the legal findings and not substantiated his decision with any material to come to the conclusion, the CIT(A) was directed to consider claim of assessee on merit after verification/examination of material to be produced by the assessee with reference to the impugned claim.
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Appeal [CIT(A)] - Order of CIT(A) - No proper investigation/verification done by CIT(A) -
Assessee claimed depreciation on goodwill. During assessment proceedings, assessee had given complete detail along with supporting documents demonstrating that goodwill arose on account of amalgamation of companies, however, AO had not made any discussion to the claim of assessee. At the appellate stage, CIT(A) held that claim of assessee was not permitted under the existing law on the pretext that issue raised requires investigation and verification. Held: Decision of CIT(A) was unjustified as he had not made any discussion to the legal findings and not substantiated his decision with any material to come to the conclusion. As per law, it is required to carry out the required investigation and verification of the facts to tax the real income. Therefore, the CIT(A) was directed to consider claim of assessee on merit after verification/examination of material to be produced by the assessee with reference to claim of goodwill having arisen on account of amalgamation of companies.
Relied:Pr. CIT-4 v. Zydus Wellness Ltd. (2017) 87 Taxman.com 82 (Guj) : 2017 TaxPub(DT) 4884 (Guj-HC).
REFERRED :
FAVOUR : Matter remanded.
A.Y. : 2013-14 & 2014-15
INCOME TAX ACT, 1961
Section 36(1)(va)
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