TMI Blog1978 (8) TMI 1X X X X Extracts X X X X X X X X Extracts X X X X ..... years with which we are concerned in these appeals are 1956-57, 1957-58, 1958-59 and 1959-60, for which the relevant accounting years were the financial years ending 31st March, 1956, 31st March, 1957, 31st March, 1958, 31st March, 1959, respectively. The only question which arises for consideration in these appeals is whether the Tribunal was right in holding that the disallowance of the amounts of Rs. 46,162, Rs. 45,753, Rs. 42,967 and Rs. 46,720 out of the remuneration and commission paid to four directors of the company and one K. A. Dikshit for these four assessment years by resort to section 10(4A) of the Indian Income-tax Act, 1922, was unjustified. During the four relevant assessment years the assessee paid to its four directors and ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... . Dikshit was concerned he was neither a director nor a person having any substantial interest in the assessee and hence section 10(4A) had no application in relation to him and so far as the four directors were concerned, though section 10(4A) was applicable, there was nothing to show that the payment of commission and remuneration to them was excessive or unreasonable and hence the Tribunal was right in holding that the disallowance of various amounts out of the remuneration and commission paid to them was unjustified. The revenue thereupon preferred the present appeals with special leave obtained from this court. We have carefully considered the facts and circumstances of the present case and gone through the judgment of the High Court ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 00 per month. This would clearly show that the four directors and Shri K. A. Dikshit were attending to the business of the assessee and, in fact, this was clearly borne out from the material produced on behalf of the assessee in the proceedings before the tax authorities. We fail to see how the payment of remuneration and commission to the four directors and Shri K. A. Dikshit could, in the circumstances, be said to be excessive or unreasonable so as to warrant disallowance of any amount out of it by the Income-tax Officer under section 10(4A). The High Court was, in our opinion, right in answering the question referred to it by the Tribunal in favour of the assessee and against the revenue. We accordingly dismiss the appeal with costs. ..... X X X X Extracts X X X X X X X X Extracts X X X X
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