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TMI Blog1975 (8) TMI 55X X X X Extracts X X X X X X X X Extracts X X X X ..... id a remuneration of Rs. 60,000. The ITO though that the remuneration was excessive and he disallowed Rs. 18,000 under s. 40(c) for the asst. yr. 1973-74 and Rs. 15,000 for the asst. yr. 1974-75. On appeal the addition was confirmed for the first year but reduced to Rs. 9,000 in the next year. 2. The assessee is on further appeal before us. It was submitted that the remuneration of Rs. 60,000 p ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... reasonable considering the market value of the services rendered by the managing director. We find that the assessee company is a closely held company. The shareholders are members of one family along with the managing director and his wife. The managing director and his wife own 74 shares out of 150 shares. He is in a position to dictate the terms for himself and it is quite possible that the rem ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ht to have furnished some such guide lines and then only he could have come to the conclusion that the remuneration paid is excessive. In the absence of any comparative case being given it is impossible for us to judge whether the payment is excessive. Since the assessee has discharged his onus by giving the qualifications of Mr. Karoah, it would be difficult for us now to sustain any disallowance ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... appears that the assessee had to incur some expenditure when a representative of the shipping line whose business they are handling visited them. The expenditure was mainly stay in hotels, cost of momentees etc. These were disallowed as entertainment expenditure. The disallowance was upheld by the AAC. The counsel for the assessee submitted that these are business expenditure. We agree that these ..... X X X X Extracts X X X X X X X X Extracts X X X X
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