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2016 (12) TMI 803 - ITAT PATNADisallowance of remuneration of 50% to lady director - Held that:- As lady Directors are well qualified persons. The authorities below have drawn adverse inference that since they are occupied in other engagements also they cannot give time to this company. Find that this is a totally untenable surmise and conjecture devoid of any cogency. If the proposition advanced by the Revenue is accepted then no person can be allowed to be engaged as Directors or otherwise gainfully engaged in more than one concern. The authorities below have totally ignored submissions that these lady Directors have been engaged in the functioning of the company since the inception. There is no presumption that ladies engaged in medical profession cannot be engaged as Directors in company. Moreover on what basis learned CIT(Appeals) has held that they be paid for only 50% of the salary is also not comprehendible. It is not the case that the learned CIT(Appeals) has compared the services rendered with prevailing market price. Dehorse any cogent basis, it is an arbitrary order, which is not sustainable. The Revenue should not try to sit into the shoes of a businessman and decide how to conduct the business.Accordingly find that the lady Directors being well qualified persons and associated with the company since earlier period cannot be disallowed the remuneration of 50% as held by the learned CIT(Appeals). - Decided in favour of the assessee.
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