TMI Blog2020 (2) TMI 1499X X X X Extracts X X X X X X X X Extracts X X X X ..... es of remuneration of ₹ 36 Lacs paid to the Director As per AO there was no business activity, the AO was of the view that high remuneration paid to the Director was not in connection with the business activity of the assessee but was against rental income offered by the assessee - HELD THAT:- The Hon ble Bombay High Court in CIT Vs. Indo Saudi Services (Travel) (P.) Ltd. [ 2008 (8) TMI 208 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... assessee. - ITA No.172/Del/2019 - - - Dated:- 21-2-2020 - MS. SUSHMA CHOWLA, VICE PRESIDENT For the Appellant : Ms. Aditi Gupta, CA For the Respondent : Sh. Pradeep Singh Gautam, Sr. DR ORDER PER SUSHMA CHOWLA, VP The present appeal filed by assessee is against order of CIT(A)-9, New Delhi dated 25.10.2018 relating to assessment year 2012-13 against order passed under ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ₹ 36 Lacs paid to the Director Shri. Anshul Chawla. The AO noted that there was only one transaction of purchase of ₹ 86067/- and sale of only ₹ 110433/-. Since there was no business activity, the AO was of the view that high remuneration paid to the Director was not in connection with the business activity of the assessee but was against rental income offered by the assessee. H ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Chawla is assessed to tax and has paid taxes on the said remuneration received by him then it cannot be said that there was diversion of funds by the assessee to its Managing Director for tax avoidance. Hence there is no merit in making any disallowance on account of the said managerial remuneration paid to the Managing Director. Accordingly, we direct the AO to allow expenditure of ₹ 36 Lac ..... X X X X Extracts X X X X X X X X Extracts X X X X
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