https://www.taxtmi.com/caselaws?id=211497 The High Court ruled in favor of the appellant, allowing the appeal regarding the deduction of commission paid to the managing director under section 36(1)(ii) of the Income-tax Act, 1961. The Court held that the commission paid was for services rendered and allowable as an expense. It emphasized that commission and dividend were distinct, with commission being part of the managing director's salary subject to tax, while dividend was a return on investment for all shareholders. The Court directed the computation of dividend payable and disallowed the commission to the extent of the profit that would have been payable as dividend, allowing the difference as a deduction under section 37(1) of the Act. en-us Fri, 16 Dec 2011 00:00:00 +0530 Sat, 24 Mar 2012 13:34:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=211497 The High Court ruled in favor of the appellant, allowing the appeal regarding the deduction of commission paid to the managing director under section 36(1)(ii) of the Income-tax Act, 1961. The Court held that the commission paid was for services rendered and allowable as an expense. It emphasized that commission and dividend were distinct, with commission being part of the managing director's salary subject to tax, while dividend was a return on investment for all shareholders. The Court directed the computation of dividend payable and disallowed the commission to the extent of the profit that would have been payable as dividend, allowing the difference as a deduction under section 37(1) of the Act. Case-Laws Income Tax Fri, 16 Dec 2011 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=211497