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2019 (2) TMI 348 - AT - Income TaxDisallowance of salary paid to directors u/s 40A(2) - as per revenue assessee has failed to prove the concerned payees’ eligibility and qualification - Held that:- Both the lower authorities have simply brushed aside assessee’s payment claimed without even drawing a comparison of the market rate of the corresponding services vis-à-vis educational qualifications. Neither of the lower authorities has taken into account assessee’s business requirement of availing its directors’ services for effective management of its business operations in non-banking financial activities. Therefore hold that the impugned disallowance of ₹5.50 lac to be deleted. - Decided in favour of assessee.
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