https://www.taxtmi.com/caselaws?id=62066 The Appellate Tribunal upheld the disallowance of excessive remuneration paid to the managing director for two assessment years under section 40(c) but reduced the addition for one year. The Tribunal emphasized the need for the Income Tax Officer to provide comparative cases to determine the reasonableness of the remuneration. As the Officer failed to substantiate the disallowance with relevant material, the Tribunal deleted the additions for both years. However, it clarified that the Officer could determine market value with reference to comparable cases in future years. The disallowance of certain expenses treated as entertainment expenses under section 37(2) was also upheld for both years. en-us Fri, 01 Aug 1975 00:00:00 +0530 Mon, 17 Jan 2011 18:58:38 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=62066 The Appellate Tribunal upheld the disallowance of excessive remuneration paid to the managing director for two assessment years under section 40(c) but reduced the addition for one year. The Tribunal emphasized the need for the Income Tax Officer to provide comparative cases to determine the reasonableness of the remuneration. As the Officer failed to substantiate the disallowance with relevant material, the Tribunal deleted the additions for both years. However, it clarified that the Officer could determine market value with reference to comparable cases in future years. The disallowance of certain expenses treated as entertainment expenses under section 37(2) was also upheld for both years. Case-Laws Income Tax Fri, 01 Aug 1975 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=62066