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2013 (11) TMI 140 - AT - Income TaxDisallowance of commission paid to directors – Held that:- Following AMD Metplast (P) Ltd [2011 (12) TMI 320 - Delhi High Court]- Commission is part and parcel of salary and is subject to tax deduction at source – Contrarily, dividend is a return on investment and not salary or part thereof – Managing Director and whole time Director (Operations) were paid commission on the basis of duly passed Board Resolution and was in accordance with the provisions of the Companies act. The payment of Commission is necessarily a part of salary as defined in section 17 – Decided against Revenue. Disallowance of bad debts written off – Held that:- With regard to bad debts copies of invoices were furnished by the assessee - As per amendment in section 36, there is no requirement to show that efforts had been made to recover the amounts from debtors – Decided against revenue. Disallowance of foreign travel expenses – Held that:- Since spouses had also accompanied with the directors of the company there must be some element of personal nature in the expenses – Decided against assessee.
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