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Sunij Pharma Pvt. Ltd. Versus Income-tax Officer, Ward 8 (2) , Ahmedabad.

2015 (12) TMI 1327 - ITAT AHMEDABAD

Disallowance of director’s remuneration - non deduction of TDS - Held that:- 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 ledger of director’s remuneration, form no.16 for certificate u/s 203 of the Act for TDS from income chargeable under the head salaries along with proof of deposit of TDS on salary for in .....

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ssee.

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 given by M/s.Anmol Sekhri & Associates, Mumbai, valuer, and a copy of which has been filed in the compilation before .....

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t Member. This appeal of the assessee is directed against the order of CIT(A) XIV, Ahmedabad dated 6.7.2011 in appeal no.CIT(A) XIV/Wd.8(2)/171/2010-11 for Asst. Year 2008-09. Assessment was framed u/s 143(3) r.w.s. 147 of the Income-tax Act, 1961 (in short the Act) on 27th December, 2010. 2. Grounds of appeal are not in consonance with rule 8 of Incometax Appellate Tribunal Rules, 1963, as they are descriptive and argumentative in nature. In brief the grievances of the assessee are two folds -( .....

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see 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 .....

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was increased to ₹ 1,00,000/- per month w.e.f. 1.4.2007 as per the decision taken in the Board of Directors meeting on 15.12.2007. Further to satisfy the queries raised by the Assessing Officer the proof of increase in director s remuneration from ₹ 20,000/- to ₹ 1,00,000/-, assessee produced relevant extract of Board s resolution dated 15.12.2007. Ld. AR submitted that due to clerical mistake at the place of mentioning w.e.f. 1.4.2007 it was inadvertently mentioned as 20th Dec .....

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y of ₹ 1 lac per month by effecting it in quarter 3rd of the year under appeal. 8. On 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 o .....

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of TDS on salary for increased amount of remuneration effective from 1.4.2007 which was paid on 22.12.2007. All these evidences have not been controverted 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. Th .....

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wer authorities and could not rebut the submission of ld. AR. 14. We have heard the rival contentions and perused the material on record. From perusal of the order of co-ordinate bench, we find that the issue has been decided in favour of assessee in ITA No.3884/Ahd/2007 for Asst. Year 2004-05 vide its order dated 19/12/2014 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 b .....

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