https://www.taxtmi.com/caselaws?id=186603 The Tribunal overturned the CIT(A)'s decision to disallow director's remuneration under section 40A(2) of the Income Tax Act for the assessment year 2007-08. The Tribunal found the increase in director's remuneration justified based on the significant increase in turnover and net profit, attributing it to the directors' qualifications and efforts. It emphasized the necessity of establishing the fair market value of services before disallowing under section 40A(2) and noted that the reduction in other employees' salaries was not indicative of excessive director's remuneration. The Assessing Officer was directed to allow the entire director's remuneration. en-us Fri, 16 Nov 2012 00:00:00 +0530 Fri, 23 Sep 2016 15:55:22 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=186603 The Tribunal overturned the CIT(A)'s decision to disallow director's remuneration under section 40A(2) of the Income Tax Act for the assessment year 2007-08. The Tribunal found the increase in director's remuneration justified based on the significant increase in turnover and net profit, attributing it to the directors' qualifications and efforts. It emphasized the necessity of establishing the fair market value of services before disallowing under section 40A(2) and noted that the reduction in other employees' salaries was not indicative of excessive director's remuneration. The Assessing Officer was directed to allow the entire director's remuneration. Case-Laws Income Tax Fri, 16 Nov 2012 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=186603