Tribunal overturns disallowances on director's remuneration and goodwill depreciation for 2008-09 assessment year.

The Tribunal allowed the appeal, overturning the disallowances of director's remuneration and depreciation on goodwill for the assessment year 2008-09. The disallowance was found unjustified due to discrepancies in the effective date of the director's remuneration increase, supported by relevant documents. Additionally, the Tribunal justified the claim for depreciation on goodwill based on settled precedents, including a previous decision in the assessee's favor for the assessment year 2004-05 and Supreme Court rulings on the issue.

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Issues:
1. Disallowance of remuneration paid to Director
2. Disallowance of depreciation of goodwill

Analysis:
1. The appeal was against the disallowance of director's remuneration and depreciation on goodwill for the assessment year 2008-09. The Assessing Officer disallowed a portion of the director's remuneration and depreciation claimed by the assessee. The CIT(A) upheld the disallowances. The Tribunal considered the discrepancy in the effective date of the director's remuneration increase, which led to the disallowance. The Tribunal found that the original board resolution clearly mentioned the increase w.e.f. 1.4.2007, supported by relevant documents. The Tribunal concluded that the disallowance was unjustified, and the addition was deleted.

2. Regarding the disallowance of depreciation on goodwill, the Tribunal referred to a previous decision in the assessee's favor for the assessment year 2004-05. The Tribunal noted that the issue of allowing depreciation on goodwill as an intangible asset had been settled in various decisions, including the Supreme Court's ruling. The Tribunal found the valuation of goodwill reasonable and justified the claim for depreciation. Following the precedent, the Tribunal allowed the appeal on this ground as well.

In conclusion, the Tribunal allowed the appeal of the assessee, overturning the disallowances of director's remuneration and depreciation on goodwill for the assessment year 2008-09.

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