https://www.taxtmi.com/caselaws?id=25943 Director remuneration paid as advances remained in suspense until the Company Law Board later granted sanction, because payment without approval was barred by the Companies Act. The later retrospective approval removed the prohibition, but the liability accrued and related back to the earlier accounting period in which the expenditure was incurred. On that basis, the ceiling under section 40(c)(i)(A) of the Income-tax Act could not be applied to the disputed remuneration for the later assessment year, and the disallowance was held unjustified. en-us Tue, 20 Jan 1987 00:00:00 +0530 Mon, 01 Feb 2010 17:45:02 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=25943 Director remuneration paid as advances remained in suspense until the Company Law Board later granted sanction, because payment without approval was barred by the Companies Act. The later retrospective approval removed the prohibition, but the liability accrued and related back to the earlier accounting period in which the expenditure was incurred. On that basis, the ceiling under section 40(c)(i)(A) of the Income-tax Act could not be applied to the disputed remuneration for the later assessment year, and the disallowance was held unjustified. Case-Laws Income Tax Tue, 20 Jan 1987 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=25943