https://www.taxtmi.com/caselaws?id=400980 Interest on borrowed funds used in project business was treated as a periodic business cost and, because the assessee had consistently followed that accounting method and it had been accepted in earlier scrutiny years, it was not required to be capitalised to work-in-progress. Remuneration paid to directors was also protected from full disallowance under section 40A(2)(a), since the provision permits only the excessive or unreasonable component to be disallowed on a proper benchmark of fair market value, business need and benefit derived; the directors had rendered substantial services and the payments had been accepted in earlier years. The additions were deleted. en-us Mon, 10 Aug 2020 00:00:00 +0530 Tue, 24 Nov 2020 12:11:37 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=400980 Interest on borrowed funds used in project business was treated as a periodic business cost and, because the assessee had consistently followed that accounting method and it had been accepted in earlier scrutiny years, it was not required to be capitalised to work-in-progress. Remuneration paid to directors was also protected from full disallowance under section 40A(2)(a), since the provision permits only the excessive or unreasonable component to be disallowed on a proper benchmark of fair market value, business need and benefit derived; the directors had rendered substantial services and the payments had been accepted in earlier years. The additions were deleted. Case-Laws Income Tax Mon, 10 Aug 2020 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=400980