https://www.taxtmi.com/caselaws?id=69318 Commission paid to the Chairman and two Directors was examined under section 40(c) of the Income-tax Act for excessiveness or unreasonableness. The payments were sanctioned by shareholder resolution, linked to net profits as a performance incentive, and reduced when profits fell. As the Department did not show that the remuneration was excessive having regard to the company's business needs or any comparable case, the disallowance was not justified and the commission was held not liable to be treated as excessive or unreasonable. en-us Tue, 25 Sep 1979 00:00:00 +0530 Wed, 06 Apr 2011 12:00:06 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=69318 Commission paid to the Chairman and two Directors was examined under section 40(c) of the Income-tax Act for excessiveness or unreasonableness. The payments were sanctioned by shareholder resolution, linked to net profits as a performance incentive, and reduced when profits fell. As the Department did not show that the remuneration was excessive having regard to the company's business needs or any comparable case, the disallowance was not justified and the commission was held not liable to be treated as excessive or unreasonable. Case-Laws Income Tax Tue, 25 Sep 1979 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=69318