2012 (12) TMI 1151

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..... In this case, the Revenue is aggrieved by the order of the Income Tax Appellate Tribunal (ITAT) dated 18.05.2012 whereby the CIT(A)?s order, setting-aside the addition made under Section 36(1)(ii) of the Income Tax Act, was set-aside. The facts are that the assessee had paid commission and ex-gratia(bonus) to its Managing Director, Sh. J.S. Kapoor to the tune of ₹ 1,71,29,375/-. The ass .....

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..... is no applicability of Section 36(1)(ii) of the Act, and even the revenue recognizes that the fact of payment alone is essential and the excessiveness thereof can be gone into only under the provisions of Section 40A(ii) of the Act and the AO did not invoke the said provisions . On the basis of foregoing discussion, we are of the view that the commission and ex-gratia paid to Managing Direct .....

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