IN CASE OF LOSS MAKING COMPANY VALUING GOODWILL AT 10% OF THE TOTAL CONSIDERATION, WITHOUT ANY MATERIAL ON RECORD NOT SUSTAINABLE

The order of the Tribunal and the Commissioner of Income Tax (Appeals) show that the assessee
purchased loss making cement plant from M/s. Coramandel Fertilizers Limited, for a sale consideration of Rs.105.30 crores. Evidently, the cement plant purchased was making loss ever since
its commencement of the business, hence, no value was assigned in respect of the brand name as well as for goodwill.