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2016 (9) TMI 762 - AT - Income TaxAddition u/s 40A - disallowance being the 50% of salary paid to Director - Held that:- Assessing Officer (A.O.) in this case has not brought out any comparables before disallowing 50% of remuneration paid to Smt.Kiran Qureshi on adhoc basic u/s 40A(2)(b) of the Income Tax Act, 1961 (the Act). The assessee justified the payment by demonstrating that, Smt.Kiran Qureshi is having more than two decades of experience in the job and she is well education and widely travelled. It was further pointed out that she has wide exposure to different aspects of import, export and aviation business and is a Promoter Director of the assessee company and that she is also on the Board of Directors of M/s Hind Industries Ltd. and M/s Hind Agro Industries Ltd. It was further submitted that Smt.Kiran Qureshi pays tax at the maximum marginal rates and hence there is no diversion of taxable income. In this case there is no evasion of tax. - Decided in favour of assessee.
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