https://www.taxtmi.com/caselaws?id=190196 Section 10(4A) permits disallowance of remuneration only where the Income-tax Officer, on relevant material, forms an opinion that it is excessive or unreasonable having regard to the company's legitimate business needs and the benefit derived by it. The inquiry must focus on the nature of the business, the work actually done, the income generated, and the necessity of the payment, not on arbitrary or immaterial factors. The Tribunal could not ignore its earlier view for the prior year, though it was not res judicata. On the facts considered, the grounds relied on were irrelevant to the statutory test, so the remuneration could not be disallowed as excessive or unreasonable. en-us Wed, 19 Dec 1962 00:00:00 +0530 Wed, 08 Feb 2017 18:45:24 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=190196 Section 10(4A) permits disallowance of remuneration only where the Income-tax Officer, on relevant material, forms an opinion that it is excessive or unreasonable having regard to the company's legitimate business needs and the benefit derived by it. The inquiry must focus on the nature of the business, the work actually done, the income generated, and the necessity of the payment, not on arbitrary or immaterial factors. The Tribunal could not ignore its earlier view for the prior year, though it was not res judicata. On the facts considered, the grounds relied on were irrelevant to the statutory test, so the remuneration could not be disallowed as excessive or unreasonable. Case-Laws Income Tax Wed, 19 Dec 1962 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=190196