ITAT : Allows depreciation on know-how, goodwill acquired under slump-sale, upholds slump price bifurcation

Pune ITAT allows depreciation claim for AYs 2004-05 and 2005-06 on intangible assets, viz. know-how, trademark and patents, goodwill acquired by assessee-company pursuant to takeover of the catalyst business on a going-concern basis (during preceding AY 2003-04 at a slump sale price of Rs.153.18 cr.), also allows depreciation on non-compete fees payment; Rejects Revenue's stand that valuer had not correctly allocated slump sale consideration to various assets as valuer did not attribute any cost to most important asset acquired by assessee i.e. land at Panki and Taloja, perusing various agreement, ITAT holds that no land was transferred to assessee, also rejects Revenue's stand that no ‘substantial’ part of slump price can be attributed to the know-how, patents and trademarks;  Further, remarks that “ultimately after the slump price has been attributed first to the value of tangible assets, then the balance is to be attributed to intangible assets and once the same is done and whether it is under the umbrella of know-how, trademarks, patents or goodwill, it makes no difference since all these are covered under the umbrella of intangible assets, which are eligible for claim of depreciation u/s. 32(1)(ii)”, relies upon SC ruling in Smif Securities; Further,  ITAT rejects Revenue’s stand that  slump price paid for acquiring bundle of rights / assets cannot be apportioned amongst the individual assets for the purpose of depreciation, relies on Punjab & Haryana HC ruling  in Shreyans Industries Ltd., Delhi HC rulings in Triune Energy Services (P.) Ltd. and DE Nora India Ltd.; Referring to the co-ordinate bench ruling in assessee’s own case for preceding AY whereby the sum of Rs.153.18 crores was first allocated to cost of tangible assets, further to the value of trademarks, patents and know-how and the balance to the goodwill based on the values assigned by an independent Valuer and depreciation was allowed to assessee, ITAT remarks that “Once the asset has entered into ‘block of assets’ and thereafter, depreciation has been allowed ….the WDV of such asset is to be accepted as sacrosanct and depreciation has to be allowed on the same.”, relies on Bombay HC ruling in HSBC Asset Management (I) (P.) Ltd.  :ITAT