Addition on account of directors’ remuneration being treated as ...

Directors' remuneration deemed excessive under Income Tax Act Section 40A(2); reasonableness not for Revenue to decide.

April 11, 2023

Case Laws Income Tax AT

Addition on account of directors’ remuneration being treated as excessive u/s. 40A(2) - once it is established that remuneration has been paid to directors then Revenue cannot put itself in the arm chair of a businessman to assume the role of ascertainment, how it is a reasonable remuneration having regard to the facts and circumstances of the case. Matter of commercial expediency should be left to the businessman concern or the board of directors - AT

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Addition on account of directors’ remuneration being treated as ...

Directors' remuneration deemed excessive under Income Tax Act Section 40A(2); reasonableness not for Revenue to decide.

April 11, 2023

Case Laws Income Tax AT

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