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2022 (4) TMI 693 - HC - Income TaxDisallowance u/s 36(1)(ii) of bonus paid to Directors - As per AO bonus was paid to avoid payment of dividend distribution tax - HELD THAT:- In the present case, there is not even an iota of word that the amount paid is commission for services rendered or bonus. There are only two directors in the company. The entire amount has been paid to both of them. It is not the case of the appellant that there has been any term of employment nor is there any case that any special services has been rendered by these two directors. On the similar analogy, the judgment in Career Launcher Ltd. [2012 (4) TMI 440 - DELHI HIGH COURT] is also distinguishable wherein as concluded that as long as the bonus or commission is paid to the directors for services rendered and as part of their term of employment, it has to be allowed. There is no substantial question of law in the present cases. The assessing officer and CIT (A) have given a concurrent finding that the assessee has paid the bonus in lieu of the dividend and therefore, the above sum is disallowed under Section 36 (1) (ii) of Act. The ITAT also after considering the findings of the assessing officer and the CIT (A) had inter alia held that the payment of bonus or commission is not allowable as deduction under Section 36 (1) (ii) of the Act in the hands of the assessing company. In the absence of any substantial question of law, the appeals are liable to be dismissed. Hence, the present appeals along with the pending applications are dismissed.
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