https://www.taxtmi.com/caselaws?id=751750 ITAT Mumbai allowed deduction u/s 36(1)(ii) for bonus payments of Rs. 96 lakh each to two promoter directors. The assessee successfully demonstrated that directors with 35 years IT experience were actively involved in day-to-day operations, and bonus was justified by company's 44% turnover increase and 55% sales growth. The tribunal distinguished the case from Dalal Broacha precedent, noting different business circumstances and that performance improvement resulted from directors' dedicated efforts rather than market conditions. The disallowance was deleted and appeal allowed. en-us Mon, 22 Apr 2024 00:00:00 +0530 Wed, 24 Apr 2024 06:29:49 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=751750 ITAT Mumbai allowed deduction u/s 36(1)(ii) for bonus payments of Rs. 96 lakh each to two promoter directors. The assessee successfully demonstrated that directors with 35 years IT experience were actively involved in day-to-day operations, and bonus was justified by company's 44% turnover increase and 55% sales growth. The tribunal distinguished the case from Dalal Broacha precedent, noting different business circumstances and that performance improvement resulted from directors' dedicated efforts rather than market conditions. The disallowance was deleted and appeal allowed. Case-Laws Income Tax Mon, 22 Apr 2024 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=751750