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2012 (11) TMI 64 - AT - Income TaxPenalty u/s.271(1)(c) - excess claim of deduction u/s. 80HHC - Held that:- No material facts were concealed by the appellant. No income has been detected or unearthed which was not disclosed by the assessee. The addition has arisen only on account of different views having been taken as to the nature of certain items of income. This is purely a debatable matter. More than one view was clearly possible. As the D.R. could not controvert the finding of CIT (A) by bringing any contrary material on record no infirmity in the order of the CIT (A) in deleting the penalty - in favour of assessee. Disproportionate increase in remuneration to the Managing and Executive Directors - CIT(A) deleted the addition - Sec. 40A(2)(a) - Held that:- The assessee is a public limited company and is governed by the provisions of Companies Act, 1956. Schedule XIII of the Companies Act provides the remuneration payable to Directors based on the effective capital and net profits of the Company. As per the provisions of Schedule XIII, the assessee is entitled to pay Rs.73.21 lacs as remuneration to its Directors but has paid only Rs.48.25 lac which is well within the limits prescribed by the Companies Act - As decided in CIT Versus Shriram Pistons And Rings Limited [1989 (8) TMI 51 - DELHI HIGH COURT] when the Company Law Board (CLB) had approved the remuneration it could not be said that the expenditure was excessive or unreasonable - in favour of assessee.
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