https://www.taxtmi.com/caselaws?id=8465 Section 10(4A) permits disallowance of directors' remuneration only where the payment is excessive or unreasonable having regard to the company's legitimate business needs and the benefit derived by it. The reasonableness test must be applied objectively from the standpoint of a prudent businessman, not by substituting a purely revenue-oriented view. On the stated facts, the company's structure, the directors' work, the scale of operations, head-office expenditure, and the smooth running of the business supported the commercial justification of the remuneration and commission scheme, so the payments were not disallowable. en-us Tue, 22 Jun 1971 00:00:00 +0530 Sun, 26 Apr 2009 22:12:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=8465 Section 10(4A) permits disallowance of directors' remuneration only where the payment is excessive or unreasonable having regard to the company's legitimate business needs and the benefit derived by it. The reasonableness test must be applied objectively from the standpoint of a prudent businessman, not by substituting a purely revenue-oriented view. On the stated facts, the company's structure, the directors' work, the scale of operations, head-office expenditure, and the smooth running of the business supported the commercial justification of the remuneration and commission scheme, so the payments were not disallowable. Case-Laws Income Tax Tue, 22 Jun 1971 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=8465