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2021 (7) TMI 237 - AT - Income TaxDisallowance u/s. 36(1)(ii) bonus and commission paid to the directors as per agreements of appointment - CIT(A) confirming the disallowances of bonus and commission to Directors by stating that these were not linked to any specific service rendered and without going through the facts that the whatever be the nomenclature the remuneration within the prescribed limit as per company law is allowable.”- HELD THAT:- As bonus and commission paid to the directors paid as per the agreement of their appointment with the assessee; and since amount given to the directors were within the prescribed limit as per the Company Law, the claim of expenditure ought to have been allowed by the AO. As decided in own case [2019 (3) TMI 1894 - ITAT KOLKATA]CIT(A) upheld the disallowance on the ground that the agreements are generally worked. In our view, this is not a valid ground to make this disallowance. Agreements are to be understood in such a way in which both the parties to the agreement, desired and understood. Section 36(1)(ii) does not apply in this case. Hence, we allow the grounds of the assessee
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