ITAT says Demerger Goodwill and Brands Qualify for Depreciation

In Tata Consumer Products Ltd., the ITAT deleted an additional Section 14A disallowance of ₹8.82 crore and allowed depreciation on goodwill, brands and distribution network recognised on demerger for AY 2020-21. It held that the restrictions governing assets already forming part of the demerged company’s block of assets did not apply to the newly identified intangible assets acquired for consideration. The Tribunal also remanded the Section 80G deduction claim to the Assessing Officer.