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TMI Blog2011 (2) TMI 195X X X X Extracts X X X X X X X X Extracts X X X X ..... ssee is accordingly allowed - Hence, the appeal filed by the assessee is allowed. - ITA No. 8814/Mum/2010, - - - Dated:- 28-2-2011 - R.K. Panda, J. R.K. Gupta, DR for the Respondent ORDER R.K. Panda:- 1. This appeal filed by the assessee is directed against the order dated 22.9.2010 of the CIT(A)-13, Mumbai relating to assessment year 2006-07. 2. Notice issued through RPAD by the Registry was returned un-served by the Postal Authorities with the remarks 'left'. Therefore, the appeal is being disposed of on the basis of the material available on record and after hearing the ld DR. 3. The assessee, in its grounds of appeal, has challenged the order of the CIT(A) in confirming the disallowance of Rs. 96,380/ ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... y the assessee. He noted that Mrs Samina Vohra is drawing a salary of Rs. 1,92,760/- which is more than the salary drawn by the Managing Director at Rs. 1,23,120/-. According to the Assessing Officer Smt Samina Vohra does not contribute much to the asessee's business except for signing few correspondences with the banks. The marketing aspect of the assessee's trading business is done by the Managing Director, who is drawing less salary than the lady director. Therefore, according to the Assessing Officer the remuneration paid to Smt Samina Mazhar Vohra, who happens to be the wife of the Managing Director, is unreasonable and excessive. The Assessing Officer, further observed from the nature of activity undertaken by the assessee company tha ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... h the arguments advanced by the assessee before him and confirmed the action of the Assessing Officer by holding as under:- "Perusal of the few correspondences filed by the appellant shows that Smt S M Vohra has made correspondence with bank for issue of cheque book/correspondence with bank for challans/correspondence with M/s Anjali Sales Corporation enclosing cheques/correspondence with M/s Swastic Engineering Works regarding payments towards overdue bills etc. Apparently, it seems that these correspondences are made in nature of administrative work and does not involve major management decisions etc. As such, giving a salary of Rs. 1,92,760/- to the director (who looks after mere routine work viz-a-vis salary of Rs. 1,23,120/- to the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... bundantly clear from the facts brought on record by the Assessing Officer as well as the CIT(A) that Smt Samina Vohra is regularly attending office, correspondences with various parties and makes correspondences with banks. 7.2 It has been held by the Hon'ble Supreme Court in the case of CIT vs Edward Keventer P. Ltd. (supra) that no part of remuneration paid to director could be regarded as excessive or unreasonable, if the legitimate business need of the company and the benefit derived by or accruing to it there from, were taken into account from the point of view of a businessman. Although the above decision was cited before the CIT(A), which I find has been mentioned at page 3 of the order of the CIT(A), I find the CIT(A) has not co ..... X X X X Extracts X X X X X X X X Extracts X X X X
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