1994 (8) TMI 18 - HC - Income Tax

Summary

The High Court of Madras held that the enhancement of remuneration paid to a director by a company was allowable as a deduction, even though the approval was not obtained in the first general body meeting but was later approved in an extraordinary general meeting. The court ruled in favor of the assessee, stating that the Income-tax Officer cannot disallow the payment as it was for services rendered by the director. The Tribunal's decision to disallow the enhancement was deemed incorrect.