https://www.taxtmi.com/caselaws?id=35870 The High Court upheld the Income-tax Appellate Tribunal's decision to fix the salary of a permanent life director of a private limited company at Rs. 2,500 per month, after disallowing a portion under section 40(c) of the Income Tax Act. The Court found the Tribunal's assessment of the director's remuneration reasonable, considering factors such as education, experience, and contribution to the business. Despite the company's arguments citing relevant precedents, the Court dismissed the petitions, emphasizing the need to evaluate remuneration in line with the company's legitimate business needs. Another judge concurred with the decision, and no costs were awarded to either party. en-us Mon, 18 Aug 1980 00:00:00 +0530 Wed, 17 Mar 2010 12:48:15 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=35870 The High Court upheld the Income-tax Appellate Tribunal's decision to fix the salary of a permanent life director of a private limited company at Rs. 2,500 per month, after disallowing a portion under section 40(c) of the Income Tax Act. The Court found the Tribunal's assessment of the director's remuneration reasonable, considering factors such as education, experience, and contribution to the business. Despite the company's arguments citing relevant precedents, the Court dismissed the petitions, emphasizing the need to evaluate remuneration in line with the company's legitimate business needs. Another judge concurred with the decision, and no costs were awarded to either party. Case-Laws Income Tax Mon, 18 Aug 1980 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=35870