Goodwill Not Within the Ambit of Block of Assets
The Central Board of Direct Taxation (CBDT) issued a notification dated 07 July 2021 by virtue of which an assessee cannot claim the deduction for depreciation on goodwill for ascertaining income under the head profit and gains from business or profession. This notification was issued after the Finance Act 2021 amended Section 2(11) of the Income Tax Act, 1961 explicitly removing goodwill from the definition of the block of assets. The notification provides Rule 8AC for providing clarity and ascertaining capital gains and following the written down value method if the assessee has already claimed depreciation on goodwill.
 Central Board of Direct Taxes, Department of Revenue, Ministry of Finance, Notification No. 77/2021/ F. No. 370142/23/2021-TPL, https://www.incometaxindia.gov.in/communications/notification/notification_77_2021.pdf
 Section 3 of the Finance Act, 2021, https://egazette.nic.in/WriteReadData/2021/226208.pdf