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Income Tax - Highlights / Catch Notes

Home Highlights March 2013 Year 2013 This

Genuineness of Commission paid to Directors - the payment ...

Income Tax

March 11, 2013

Genuineness of Commission paid to Directors - the payment commission by assessee company is wholly and exclusively for business purposes and same is allowable - AT

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  1. Disallowance of commission paid to Managing Director and Working Director - it cannot be doubted that the payment of dividend was made in the guise of commission to the directors.

  2. Disallowance of payment of professional fee to the directors - allegation of paying excessive remuneration to the directors - services provided by the directors towards...

  3. Disallowing excess directors remuneration - sum paid towards directors remuneration and that is to the extent of 80% of the net profit - the AO has not carried out any...

  4. Genuineness of expenditure - Consultancy charges paid to three directors of the assessee company over and above the remuneration - these directors are separately...

  5. Disallowance u/s section 36(1)(ii) - payment in lieu of dividend - amount of commission and bonus paid to the Managing Director was an allowable business expenditure - AT

  6. Genuineness of payment of commission to shareholders employees - As per the agreement, six directors, who were also share holders, were paid additional salary termed as...

  7. Addition u/s 68 - We do not understand proposition of the assessee that cash had changed the hands from the company to its promoter–Director without any reason and there...

  8. Rent paid by director of the company in her individual capacity - directors serve as agents - any transaction carried out by the directors on behalf of the company is a...

  9. Genuineness of Expenses – Commission paid or not - Assessee could have procured the bullion without assistance of any agent - additions confirmed - HC

  10. Penalty under section 77(c) on Director - delay in payment of service tax - No provision for imposing personal penalty on the Director - AT

 

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