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2015 (4) TMI 1151 - HC - Income TaxInvoking provisions of Section 40A(2)(b)(ii) - payment made to Renu Munjal, Director the assessee company - AO had invoked Section 36(1)(ii) of the Act on the ground that Renu Munjal was also a shareholder and therefore, the commission payment should be disallowed as dividend could have been paid - Held that:- An identical question had engaged the attention of this Court for the Assessment Year 2005-06 [2014 (8) TMI 1091 - DELHI HIGH COURT] as held that reasoning of the Assessing Officer has been rightly rejected by the Tribunal. It is also noticeable that tax on dividend payment payable by the respondent company was much less than the tax payable by the individual assessee on income under the head ‘Salary’. In case, Renu Munjal had received dividend, she would not have paid any tax on dividend. However, she has paid tax on the commission earned. In these circumstances, we are not inclined to interfere with the impugned order.
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