https://www.taxtmi.com/caselaws?id=6529 Remuneration paid to a managing director and deputy managing director, even if fixed under the articles of association, remained subject to disallowance where it was excessive or unreasonable having regard to the company's business needs and the benefit derived. The statutory power of scrutiny was not displaced by contractual or corporate approval. Where the assessee produced no evidence on the duties performed, services rendered, or business justification for the payment, the burden was not shifted to the tax authority to independently collect proof before acting. The disallowance was therefore sustained on the materials before the taxing authority. en-us Wed, 06 May 1970 00:00:00 +0530 Fri, 05 Dec 2008 00:00:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=6529 Remuneration paid to a managing director and deputy managing director, even if fixed under the articles of association, remained subject to disallowance where it was excessive or unreasonable having regard to the company's business needs and the benefit derived. The statutory power of scrutiny was not displaced by contractual or corporate approval. Where the assessee produced no evidence on the duties performed, services rendered, or business justification for the payment, the burden was not shifted to the tax authority to independently collect proof before acting. The disallowance was therefore sustained on the materials before the taxing authority. Case-Laws Income Tax Wed, 06 May 1970 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=6529