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2019 (3) TMI 1894 - AT - Income TaxDisallowance u/s. 36(1)(ii) bonus and commission paid to the directors as per agreements of appointment - CIT(A) made disallowances of bonus & commission to Directors by stating that these were not linked to any specific efforts and without going through the evidence filed before him - HELD THAT:- As payments in question was made to directors of the assessee company. These payments were made pursuant to agreements for payment of bonus and commission copies of which were furnished to the Revenue. The payments were made within the limit prescribed by law. CIT(A) upheld the disallowance on the ground that the agreements are generally worked. In our view, this is not a valid ground to make this disallowance. Agreements are to be understood in such a way in which both the parties to the agreement, desired and understood. Section 36(1)(ii) does not apply in this case. Hence, we allow the grounds of the assessee.
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