https://www.taxtmi.com/caselaws?id=248142 The High Court allowed the writ petition challenging the Income Tax Appellate Tribunal's order that disallowed commission paid to Directors for personal guarantees under Section 36(1)(ii) of the Income Tax Act. The Court held that the commission was a legitimate business expense, as the Directors provided guarantees beyond their employee roles. Emphasizing that the Assessing Officer's role is to verify transactions' genuineness, not dictate expenditure decisions, the Court concluded that the commission was deductible under Section 36(1)(ii) and directed rectification of the Tribunal's decision. en-us Wed, 21 May 2014 00:00:00 +0530 Wed, 20 Aug 2014 15:43:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=248142 The High Court allowed the writ petition challenging the Income Tax Appellate Tribunal's order that disallowed commission paid to Directors for personal guarantees under Section 36(1)(ii) of the Income Tax Act. The Court held that the commission was a legitimate business expense, as the Directors provided guarantees beyond their employee roles. Emphasizing that the Assessing Officer's role is to verify transactions' genuineness, not dictate expenditure decisions, the Court concluded that the commission was deductible under Section 36(1)(ii) and directed rectification of the Tribunal's decision. Case-Laws Income Tax Wed, 21 May 2014 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=248142