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2014 (1) TMI 884 - AT - Income TaxDisallowance of commission and directors remuneration - Held that:- The AO made disallowance because of the failure of assessee to provide the nature of services rendered by the payees - assessee had filed confirmation letters from six persons in which they had stated and confirmed that they had received commission on purchase orders - The Assessing Officer do not mention about these facts and there is no copies of such letters in the appeal papers - In view of conflicting statements by Assessing Officer and CIT (A), the matter may be looked again by Assessing Officer – matter remitted back to the AO for fresh adjudication. The AO made disallowance of 30% of remuneration paid to directors as excessive remuneration and in the absence of services proof of rendered by the directors – the Assessing Officer does not mention about the fact of income tax returns of the directors - this point should also be readjudicated by the Assessing Officer in the light of income tax returns of directors having been filed before him – Relying upon Assistant Commissioner of Income-tax, Circle 3(1), New Delhi Versus Bony Polymers (P.) Ltd. [2009 (11) TMI 658 - ITAT DELHI] - The Assessing Officer can compare the salary paid by assessee to its directors from their income tax returns and if the salary received from the assessee forms part of income of directors in their personal capacity, wherein, taxes has been paid, then he can arrive at the right conclusion – Decided in favour of Revenue.
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