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TMI Blog2013 (8) TMI 479X X X X Extracts X X X X X X X X Extracts X X X X ..... hable facts could also be pointed out - No Infirmity in order of CIT(A) - Following decision of Jahangir Biri Factory (P) Ltd vs D.C.I.T. [2009 (3) TMI 215 - ITAT CALCUTTA-C] - Decided in favour of Assessee. - ITA No.1691/Kol/2011 - - - Dated:- 11-6-2013 - Sri N. S. Saini AM And Sri Mahavir Singh, JM,JJ. For the Appellant: Shri Kanhiya Lal Kanak, JCIT, Sr. DR For the Respondent: Shri M ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... paid to the directors is not the nature of "commission or brokerage" as is envisaged in section 194H of the Act nor as "fees for professional or technical services" considered in section 194J of the Act. Hence there was no justification for disallowing the claim for commission payment to the directors u/s 40(a)(ia) of the Act which is otherwise an allowable business expenditure. 5. The ld. DR s ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... A.O.) is in nature of commission or brokerage mentioned the Sec.194H. However commission paid to director is nothing but part of salary/remuneration. It is a common practice that companies, in additions to fixed salary, also pay a variable component termed incentive/commission etc. to the directors. In fact clause (iv) of Sec.17(1) clearly provides that salary includes commission paid in addition ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... remuneration/commission paid to the director of Rs.11,94,000/-, which was disallowed by the AO u/s 40(a)(ia) of the Act on the ground that no tax was deducted at source from such payments, by following the decision of the Kolkata Bench of the Tribunal in the case of Jahangir Biri Factory (P) Ltd. vs DCIT (supra). The ld. DR could not bring any material on record to show that the decision of the Ko ..... X X X X Extracts X X X X X X X X Extracts X X X X
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