https://www.taxtmi.com/caselaws?id=15938 Managerial remuneration paid to a holding company on a contractual basis for services rendered was held not to attract disallowance under section 40(c) of the Income-tax Act, 1961, because that provision applies to remuneration paid to a director, a person substantially interested in the company, or their relatives, and not to a payment made to a holding company. The arrangement was found bona fide, supported by business expediency, and in the interest of the assessee's business. The expenditure was therefore allowable as business expenditure under section 37, and the issue was answered in favour of the assessee. en-us Mon, 15 Jun 1998 00:00:00 +0530 Mon, 31 Aug 2009 11:00:55 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=15938 Managerial remuneration paid to a holding company on a contractual basis for services rendered was held not to attract disallowance under section 40(c) of the Income-tax Act, 1961, because that provision applies to remuneration paid to a director, a person substantially interested in the company, or their relatives, and not to a payment made to a holding company. The arrangement was found bona fide, supported by business expediency, and in the interest of the assessee's business. The expenditure was therefore allowable as business expenditure under section 37, and the issue was answered in favour of the assessee. Case-Laws Income Tax Mon, 15 Jun 1998 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=15938