9911796707
TMI Blog2016 (12) TMI 1575X X X X Extracts X X X X X X X X Extracts X X X X ..... while making the disallowance, the onus is on the AO and the AO has not brought any material on record as to how the remuneration paid to two Directors are excessive, no comparable on the basis of region cum industry was referred by the AO or by the ld. CIT(A) while restricting the disallowance. Considering the fact that the order of ld. CIT(A) is of non-speaking order, we restore this ground of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ified in partially disallowing the addition of ₹ 10,00,000/- of Remuneration to Directors u/s 40A(2) ignoring the fact that the payment made is reasonable vis- -vis the market conditions and having regard to the qualification, experience of the Directors, the exigencies of the business and benefit accruing to the appellant. 2. Brief facts of the case are that the assessee-company is enga ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ared on behalf of assessee despite waiting for sufficient time, we left no option except to hear the submission of ld. Departmental Representative (DR) for Revenue. The ld. DR for Revenue argued that assessee claimed ₹ 30,00,000/- on account of remuneration to two Directors i.e. ₹ 18,00,000/- as remuneration to Shri Vinod Khetrapal and ₹ 12,00,000/- to Shri Sunil Runtga. Out of t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... -10 was ₹ 6,00,000/- and the assessee-company all of sudden decided to increase the remuneration by 500% to ₹ 30,00,000/- to the Directors. While the gross remuneration in AY 2009-10 to the Net Profit was 5.93%, it was jumped to 22.35% in the year under consideration and disallowed ₹ 22,00,000/- u/s 40A(2) holding as excessive and unreasonable. Before the ld. CIT(A), it was argue ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ing the disallowance. Considering the fact that the order of ld. CIT(A) is of non-speaking order, we restore this ground of appeal to the file of ld. CIT(A) to decide the issue afresh. Needless to say that the ld. CIT(A) will grant adequate and sufficient opportunity to the assessee before deciding the issue in accordance with law. The assessee is also directed to fully cooperate and to provide th ..... X X X X Extracts X X X X X X X X Extracts X X X X
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