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2019 (11) TMI 1034 - AT - Income TaxDisallowance u/s 40A(2)(a) - salary to the directors - HELD THAT:- In sofaras salary of ₹ 22.00 lakh to Shri Rojit J. Kshirsagar is concerned, it is seen recorded in para no.4.8 of the assessment order that Shri Rohit J. Kshirsagar completed his Bachelor of Production Engineering in 2004 from MIT College, Aurangabad and the Masters in Manufacturing Engineering in the year 2005 from Royal Melbourne Institute of Technology, Melbourne, Australia. His statement was also recorded during the course of assessment proceedings, from which it is gathered that he worked for 18 months in Arcelor Mittal Steel GMBH, Hemburg, Germany and got salary of 4000 Euros per month, which is equivalent to ₹ 2.00 lakh per month. Considering the qualification, experience and his past salary, we are satisfied that remuneration of ₹ 22.00 lakh paid to Shri Rohit J. Kshirsagar is reasonable. It is further observed that the assessee paid remuneration of ₹ 24.00 lakh to Shri Rohit J. Kshirsagar during the immediately preceding year, which was uncontrovertedly stated to have been allowed. - order to delete the addition made in respect of salary paid to Shri Rohit J. Kshirsagar. As regards the salary of ₹ 22.00 paid to Smt. Pratibha Kshirsagar, it is seen that the AO recorded her statement during the assessment proceedings. She is a founder director of the assessee-company. As per the statement, she was engaged in areas like Production, Despatch and Feedback. It is further noticed that she was paid remuneration of ₹ 24.00 lakh during the immediately preceding assessment year which was stated to have been allowed in entirety. Such a contention of the assessee has not been disputed by the ld. DR. Remuneration paid to Smt. Pratibha Kshirsagar is also reasonable and does not call for any disallowance u/s.40A(2)(a) .Delete the entire addition. - Decided in favour of assessee.
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