Addition of bonus paid to the directors - disallowance u/s ...

Bonuses to Directors Disallowed u/s 36(1)(ii) of Income Tax Act Due to Lack of Extra Services.

March 6, 2019

Case Laws Income Tax AT

Addition of bonus paid to the directors - disallowance u/s 36(1)(ii) - No extra services have been rendered for payment of commission - Two shareholders director were holding 50% each. Payment of bonus or commission is not allowable as deduction u/s 36(1)(ii) in the hands of the assessee company.

View Source

← Previous Next →

Addition of bonus paid to the directors - disallowance u/s ...

Bonuses to Directors Disallowed u/s 36(1)(ii) of Income Tax Act Due to Lack of Extra Services.

March 6, 2019

Case Laws Income Tax AT

You may also like:

ITAT ruled that additions based solely on third-party statements without providing cross-examination opportunity to the assessee are invalid. The Tribunal held that...

Disallowance u/s section 36(1)(ii) - payment in lieu of dividend - amount of commission and bonus paid to the Managing Director was an allowable business expenditure - AT

Disallowance of bonus paid to directors u/s 36(1)(ii) - assessee paid a bonus in addition to the remuneration to two of its directors - The revenue contended that bonus...

Disallowing bonus/commission paid to the directors of the company - so long as the bonus or commission is paid to the directors for services rendered and as part of...

Disallowance on account of Director’s commission/bonus - He was not a shareholder when the bonus/commission was paid to him and once he is not a shareholder and...

Disallowance u/s 36(1)(ii) for payment of commission - commission paid by the assessee company to Mr. Darayus A. Bathena for sale orders procured by him as a sales agent...

Disallowances of working Director’s commission on profits - Whether eligible as deduction u/s 36(1)(ii)? - the payment of commission to the Director could not have been...

Addition on commission paid to the Managing Director of the assessee company, u/s 36(1)(ii)- The directors are not only shareholders of the company. Therefore, it cannot...

Late payments towards EPF and ESI under section 36(1)(va) - Contribution made prior to filing of the return of income u/s. 139(1) - Addition by way of adjustment while...

The appeal filed by the assessee company was dismissed by the Income Tax Appellate Tribunal on the grounds that the Form 36 (memo of appeal) was not duly verified as per...

Payment of bonus to shareholder employees / directors - allowability u/s 36(1)(ii) - the payment made to the four employee directors of the company is not a payment made...

Commission & bonus paid to Directors - as no reason to doubt that what was paid to these working directors was indeed commission falling within the first part of...

Personal guarantee furnished to bank for facilitating loan - Tribunal erred in holding that the payments of commission to the Directors fell within the exclusionary limb...

The ITAT partly allowed the assessee's appeal. Travel expenses were partly disallowed by 30% considering personal element, while 70% were allowed as business expenses...

Penalty u/s 271(1)(c) - disallowance u/s. 36(1)(iii) - In fact, the assessee at the time of assessment proceedings has given a detailed calculation related to interest...

Quick Updates: