ITAT Sets Aside S.263 Order Disallowing Goodwill Depreciation for AY 2016-17, Ruling IND AS 103 Not Applicable

The Income Tax Appellate Tribunal (ITAT) ruled that goodwill depreciation remains allowable under income tax laws, setting aside an order that disallowed it based on Ind AS standards. The tribunal clarified that accounting standards do not override specific provisions of the Income Tax Act. This ruling provides significant relief to businesses claiming depreciation on acquired goodwill, emphasizing that tax treatment is governed by tax law, not solely by accounting norms.