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2016 (10) TMI 805 - AT - Income TaxDis-allowance of amount paid as commission to one whole time working Direcotr who had rendered extra service to the company - Held that:- Exceptional performance in profitability was due to the market boom and not otherwise. In case of assessee, high turnover and profits are have direct nexus with the efforts put in by the said Director - assessee did not pay commission when turnover and profits were both declining. In case of assessee, commission had been paid steadily over the years in a consistent manner since 1995-96, besides assessee‟s dividend policy. Thus, payment in question was with respect to services rendered by the said Director, was not avoidance of payment of tax. We find no avoidance of tax done. So, we direct the Assessing Officer to allow the same because same was paid to Director in proportion to the service rendered by him. - Decided in favor of assesssee.
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