TMI Blog2015 (12) TMI 1327X X X X Extracts X X X X X X X X Extracts X X X X ..... ed by ld. DR. As such looking to the above facts, we are of the view that there was a genuine increase in the remuneration of the director effective from first April, 2007 and, therefore, ld. CIT(A) was not justified in upholding the action of Assessing Officer. We set aside the order of CIT(A) on this ground and delete the impugned addition - Decided in favour of assessee. Disallowance of depreciation on the good-will - Held that:- As decided in assess's own case [2014 (12) TMI 1059 - ITAT AHMEDABAD ] it is now well settled that the goodwill is an intangible asset entitled to depreciation. The quantification of goodwill in this case seems to be reasonable. The assessee has filed a copy of working of the valuation of the goodwill as give ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s/pharmaceutical products. It filed its return of income on 29.9.2008 for Asst. Year 2008-09 declaring total income at ₹ 1,54,72,370/-. Assessee s case was selected for scrutiny assessment and notice u/s 143(2) of the Act was issued on 8/9/2009 and was duly served on assessee on 14/9/2009. Assessing Officer made addition of ₹ 13,56,515/- out of which ₹ 6,96,660/- was on account of disallowance of director s remuneration, ₹ 3,98,114/- was on account of depreciation on goodwill and ₹ 2,61,741/- as addition u/s 41(1) of the Act and assessee was assessed at ₹ 16,828,890/-. 4. On appeal, ld. CIT(A) sustained the addition for disallowance of director s remuneration at ₹ 6,96,660/- disallowance on acc ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the other hand, the ld. DR supported the orders of authorities below. 9. We have heard the rival contentions and perused the material on record. The only reason for disallowance of director s remuneration at ₹ 6,96,660/- was the mentioning of effective date of increase in remuneration which as per assessee was w.e.f. 1.4.2007 whereas Assessing Officer took it w.e.f. 20.12.2007 on the basis of copy of extract of minutes of the Board s meeting submitted by assessee during assessment proceedings. 10. Original minutes of Board meeting were shown during the course of hearing wherein it was decided for increasing remuneration of director, Mr. N. C. Dalal from ₹ 20,000/- to ₹ 1,00,000/- per month w.e.f. 1.4.2007, along with l ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... wherein the Tribunal has observed as under :- 9. We have considered rival submissions and perused the orders of the AO and the CIT(A), and also various case laws relied on by the parties. We find that the issue of allowance of depreciation on intangible asset in the form of goodwill is covered in favour of the assessee with the various decisions including that of the Hon ble Apex Court in Commissioner of Income-tax v. Smifs Securities Ltd. (supra), and the decision of ITAT, Ahmedabad in DCIT Vs. Talent India (supra). We have gone through the Memorandum of Transfer of Business, a copy of which has been filed in the compilation before us, which is dated 1.4.2001 wherein it is specifically provided that all the trade names, trade-marks ..... X X X X Extracts X X X X X X X X Extracts X X X X
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