TMI Blog2021 (3) TMI 744X X X X Extracts X X X X X X X X Extracts X X X X ..... ar 2009-10 on the file of the Income Tax Appellate Tribunal, Madras, ''D'' Bench, the Revenue has filed the above appeal. 2.The above appeal was admitted on the following substantial questions of law: Whether on the facts and in the circumstances of the case, the Tribunal was right in upholding order of Commissioner of Income Tax (Appeals) in deleting the disallowance made by the Assessing Officer under Section 36(1)(ii) of the Income Tax Act? 3.When the appeal is taken up for hearing, Mr.M.Swaminathan, learned Senior Standing Counsel appearing for the appellant fairly submitted that the issue involved in the present appeal is covered by the decision of this Court dated 02.03.2021 made in T.C.A.No.873 of 201 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... enue. Dividend is a return on investment and not salary or part thereof. Herein the consideration in the form of commission which was paid to Ashok Gupta was for services rendered by him as per terms of appointment as a Managing Director. In view of the aforesaid position, we answer the question of law in negative and in favour of the assessee and against the Revenue. The appeal is accordingly allowed. No costs . 5.So far as the 2nd question of law is concerned, the same is covered by the decision of the Hon'ble Division Bench of this court reported in 2013(255) CTR 156 [Commissioner of Income Tax v. Sanghvi and Doshi Enterprise] wherein the Division Bench of this Court held as follows:- ... 32.This takes us to the second qu ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ely, Chennai Metropolitan Development Authority had issued a letter only on 13.6.2008, per se, cannot negative the assessee's claim for deduction. .... 6.Further, the Commissioner of Income Tax (Appeals) in its order has observed that the return filed by Shri.Ravichandran that he has offered the entire commission for taxation and paid tax at the maximum marginal rate without claiming any deduction. Therefore, motive of tax avoidance is also absent. 7.On a careful consideration of the materials available on record and also the judgments cited supra, it is clear that both the questions of law are covered by the judgments of the Delhi High Court and this Court. Following the same, we are of the view that both the questions of law h ..... X X X X Extracts X X X X X X X X Extracts X X X X
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