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2013 (8) TMI 447 - AT - Income TaxAddition u/s. 40A(2)(b) of the Income Tax Act purely on the ground that the assessee has increased remuneration to its Directors - Remuneration of Rs.30,00,000/- considered as taxable under the abovementioned section 40A(2)(b) – It is submitted that It is an established fact that if working Directors are paid handsomely then only the company will earn more profit. - Held that:- Hon'ble Bombay High Court in case of CIT vs. Indo Saudi Services (Travel)(P.) Ltd. (2008 (8) TMI 208 - BOMBAY HIGH COURT) held that Revenue was not in a position to point out how the assessee evaded payment of tax by alleged payment of higher commission to sister concern since the sister concern was also paying tax at higher rate and held that disallowance of alleged excess commission paid to the sister concern was not justified. - Claim of deduction allowed - Decided in favor of assessee.
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