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2017 (10) TMI 1241 - AT - Income TaxDisallowances of managerial remuneration - AO made the disallowance observed that the assessee has paid the amount in excess of the amount sanctioned by the Central Government under the Companies Act - Held that:- In the present case the assessee claimed that it has paid remuneration to Mr.Kailash Nasta for securing some important agreements for the company. The said contract has resulted in profit of the assessee. The payment was also approved by the board resolution passed on 15th January 2009 and the remuneration paid does not violate any provisions of companies Act, 1956. It was further claimed before CIT(A) that Central Government has granted approval for payment of remuneration to Mr. Kailush Nasta under the provisions of section 334(1B) of the Companies Act, 1956. The approval granted by the Central Government is after considering the special resolution dated 15.03.2009. We gone through the case records and noted that CIT(A) has not considered this aspect while adjudicating the issue. Hence, for the purpose of verification of actual claim approved by Central Government, we restore this issue back to the file of CIT(A). Bogus purchases - whether only the profit element embedded in the bogus purchases is to be taxed instead of whole transaction - Held that:- Actual bogus purchases are at ₹ 56,24,615/- and this should be taken as correct figure in the order of CIT(A). However, we are not convinced with the arguments of learned DR to increase the profit rate or sustained full addition. We confirmed the order of CIT(A) except, the figures mentioned in the order of bogus purchases at ₹ 4,39,803/-, whereas, the actual bogus purchases are at ₹ 56,24,615/- which we have rectified. The appeal of Revenue is dismissed but subject to above directions.
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