https://www.taxtmi.com/caselaws?id=24595 The High Court analyzed the justification of increasing the managing director's remuneration from Rs. 24,000 to Rs. 36,000 per year for the assessment year 1972-73 under section 40(c) of the Income-tax Act. Emphasizing the benefit derived by the company from the director's services, the court overturned the Appellate Tribunal's decision and ruled in favor of the assessee, holding that the increment was reasonable and not excessive. The court considered the director's role in establishing a new factory and the resulting benefits to the company as crucial factors in determining the reasonableness of the increased remuneration. en-us Mon, 08 Aug 1988 00:00:00 +0530 Thu, 21 Jan 2010 10:53:59 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=24595 The High Court analyzed the justification of increasing the managing director's remuneration from Rs. 24,000 to Rs. 36,000 per year for the assessment year 1972-73 under section 40(c) of the Income-tax Act. Emphasizing the benefit derived by the company from the director's services, the court overturned the Appellate Tribunal's decision and ruled in favor of the assessee, holding that the increment was reasonable and not excessive. The court considered the director's role in establishing a new factory and the resulting benefits to the company as crucial factors in determining the reasonableness of the increased remuneration. Case-Laws Income Tax Mon, 08 Aug 1988 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=24595