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TMI Blog2011 (12) TMI 591X X X X Extracts X X X X X X X X Extracts X X X X ..... espondent company were paid bonus and commission of ₹ 77,37,965/-. The aforesaid amount as per the provisions of the Act was treated as salary paid and TDS was deducted. As per the findings recorded by the tribunal, the said Directors have paid tax in the highest tax bracket. The tribunal has rightly noticed that dividend has to be paid to all shareholders equally as per the provisions of th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... that with regard to the assessment years 2002- 03, 2005-06 and 2007-08, the Revenue had raised objections and disallowed commission/bonus payments made. The tribunal has decided the issue in favour of the assessee in the aforesaid assessment years. - ITA 1283/2011 - - - Dated:- 15-12-2011 - MR. SANJIV KHANNA AND MR. R.V.EASWAR, JJ For the Petitioner : Mr. Deepak Chopra, Sr. Standing Cou ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s been deleted by the tribunal. 4. During the period relevant to the assessment year, the respondent declared income of ₹ 1,85,42,920/- in the return filed on 27th November, 2006. The respondent company had earned profit of ₹ 1,98,98,286/-. Dividend of ₹ 20,00,000/- was proposed and was distributed/paid to the shareholders. The total paid-up capital of the company was ₹ ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ad contributed to the earnings/profit earned by the company respondent. A non-working director or a mere shareholder does not contribute and put in efforts or labour towards earning of profits. A shareholder merely makes an investment and contributes to the share capital. It is not the number of shareholders, but the principle which matters. 5. The tribunal has further recorded that the respond ..... X X X X Extracts X X X X X X X X Extracts X X X X
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