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2012 (11) TMI 711 - AT - Income TaxAdministrative Expenditure - Director’s Remuneration - commercial expediency - In case of [CIT Vs. New Savan Sugar and Gur Refining Co. Ltd., 1989 (4) TMI 12 - CALCUTTA HIGH COURT] high court has held that even if a particular expenditure is un-remunerative, such expenditure is nonetheless is proper deduction, if such expenditure is made wholly and exclusively for the purpose of making or earning such income. Director’s Remuneration - Conscious selection of a director, who has to be paid extraordinary remuneration in order to avail of his services has been made by the company as a policy decision. The expenditure is for the purpose of earning income the amount paid as remuneration is deductible. Therefore, order of the CIT(A) is set aside and deleted the addition of Rs. 49,66,499/- made by the Assessing Officer on account of remuneration paid to director and administrative expenses - In the result, appeal of the assessee is allowed.
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