https://www.taxtmi.com/caselaws?id=196880 The Allahabad High Court upheld the disallowance of annual remuneration paid to directors by two companies under the Income-tax Act, 1961. The court emphasized the need for concrete evidence linking the remuneration to specific beneficial activities for the companies to qualify for deduction. Relying on precedents, the court ruled in favor of the department, highlighting the importance of demonstrating tangible evidence of beneficial services beyond mere responsibility-sharing by directors. The decision set a precedent for future cases involving the deductibility of director remuneration, placing the burden of proof on taxpayers to establish the reasonableness of such payments. en-us Wed, 26 Mar 1980 00:00:00 +0530 Mon, 18 Dec 2017 11:37:53 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=196880 The Allahabad High Court upheld the disallowance of annual remuneration paid to directors by two companies under the Income-tax Act, 1961. The court emphasized the need for concrete evidence linking the remuneration to specific beneficial activities for the companies to qualify for deduction. Relying on precedents, the court ruled in favor of the department, highlighting the importance of demonstrating tangible evidence of beneficial services beyond mere responsibility-sharing by directors. The decision set a precedent for future cases involving the deductibility of director remuneration, placing the burden of proof on taxpayers to establish the reasonableness of such payments. Case-Laws Income Tax Wed, 26 Mar 1980 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=196880