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2015 (7) TMI 868 - AT - Income TaxDisallowance for alleged excess remuneration paid to the Directors - Held that:- Issue before us is covered by a co–ordinate bench of the Tribunal, Mumbai Benches, in assessee’s own case for the assessment year 2008–09 and 2009–10 wherein held the assessee had made excessive payment of remuneration to the Director but same was approved by the central government, as required by the Companies Act.1n these circumstances, we are of the opinion that there was no contravention of the provisions of the Act. During the course of hearing, our attention has been drawn upon two letters issued by Ministry of Corporate Affairs, Government of India, dated 31st August 2010 and 30th September 2010, wherein sanction has been granted by the Government of India for the remuneration payable to Shri Mahadevan Gopalakrishnan Iyer, the Managing Director of the company for ₹ 72,10,996; and Shri S.G. Rao, Whole-Time Director, for ₹ 51,00,000, respectively. Thus, after these approval letters, it cannot be said that the remuneration paid to the director is in excess of the limits prescribed under the relevant law. - Decided in favour of assessee.
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