https://www.taxtmi.com/caselaws?id=29311 Commission paid to directors is assessed by reference to the company's legitimate business needs and the benefit derived from the services rendered. On the facts found by the Tribunal, the directors were experienced, held responsible positions, and the commission was supported by business expansion and increased profits. The Court treated the question whether the payment was excessive or unreasonable under section 40(c)(i) as primarily one of fact for the Tribunal, and its reasoned finding would not be disturbed absent perversity or mala fides. The disallowance was therefore not warranted. en-us Tue, 01 Sep 1981 00:00:00 +0530 Fri, 12 Mar 2010 11:12:31 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=29311 Commission paid to directors is assessed by reference to the company's legitimate business needs and the benefit derived from the services rendered. On the facts found by the Tribunal, the directors were experienced, held responsible positions, and the commission was supported by business expansion and increased profits. The Court treated the question whether the payment was excessive or unreasonable under section 40(c)(i) as primarily one of fact for the Tribunal, and its reasoned finding would not be disturbed absent perversity or mala fides. The disallowance was therefore not warranted. Case-Laws Income Tax Tue, 01 Sep 1981 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=29311