https://www.taxtmi.com/caselaws?id=397358 The Tribunal upheld the decision of the Ld. CIT(A) to allow the commission paid to shareholder Directors, dismissing the Revenue's appeal. The commission was deemed justified as it was linked to sales turnover and approved by the Board of Directors. The Tribunal emphasized that such payments should be considered part of the Directors' salary, distinct from dividend returns. Previous similar commissions and the company's increased turnover supported the allowance. Citing legal precedents and factual circumstances, the Tribunal concluded that the commission was permissible under section 36(1)(ii) of the Income-tax Act, 1961. en-us Tue, 25 Feb 2020 00:00:00 +0530 Mon, 17 Aug 2020 10:03:41 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=397358 The Tribunal upheld the decision of the Ld. CIT(A) to allow the commission paid to shareholder Directors, dismissing the Revenue's appeal. The commission was deemed justified as it was linked to sales turnover and approved by the Board of Directors. The Tribunal emphasized that such payments should be considered part of the Directors' salary, distinct from dividend returns. Previous similar commissions and the company's increased turnover supported the allowance. Citing legal precedents and factual circumstances, the Tribunal concluded that the commission was permissible under section 36(1)(ii) of the Income-tax Act, 1961. Case-Laws Income Tax Tue, 25 Feb 2020 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=397358