TMI Blog2012 (6) TMI 113X X X X Extracts X X X X X X X X Extracts X X X X ..... ssessee should do and pay. Disallowances can be made u/s 40A(2), when warranted and required and when the conditions of the said section are satisfied. Commission paid to the Managing Director /Director was in accordance with the provisions of the Companies Act, 1956 - Decided in favor of assessee. - ITA No. 350/2011 - - - Dated:- 16-5-2012 - Sanjiv Khanna And R V Easwar, JJ. For Appellant ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... deducted at source. 3. The Assessing Officer has recorded that the commission payment was unjustified because the gross profit of the company had come down from 39% to 31% and, therefore, the company should not have paid commission to the Managing Director/Directors. The Assessing Officer further observed that the directors were getting sufficient remuneration for their normal functioning and th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ration payable to the directors were modified having regard to the business exigencies, economic parameters and rendering of services etc. As per the resolution passed by the Board of Directors on 13th July, 2000, which was confirmed in the Annual General Meeting held on 16th September, 2000, the directors were paid salary of Rs.1,92,000/- per month plus commission @ 2% of the net profit before in ..... X X X X Extracts X X X X X X X X Extracts X X X X
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