https://www.taxtmi.com/caselaws?id=37480 Section 40(c) permits disallowance of director's remuneration that is excessive or unreasonable having regard to the company's legitimate business needs and the benefit derived by it. The question is primarily factual where relevant material exists, and the finding is sustainable if supported by evidence. On the stated facts, the director lacked technical qualification or relevant experience, and the payment was linked in part to her relationship with other directors, so the excess salary was treated as unreasonable and disallowance of the excess was upheld. Authorities dealing with deductions under section 10(2)(xv) were distinguished because they arose in a different statutory context. en-us Wed, 11 Jul 1979 00:00:00 +0530 Tue, 30 Mar 2010 10:56:28 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=37480 Section 40(c) permits disallowance of director's remuneration that is excessive or unreasonable having regard to the company's legitimate business needs and the benefit derived by it. The question is primarily factual where relevant material exists, and the finding is sustainable if supported by evidence. On the stated facts, the director lacked technical qualification or relevant experience, and the payment was linked in part to her relationship with other directors, so the excess salary was treated as unreasonable and disallowance of the excess was upheld. Authorities dealing with deductions under section 10(2)(xv) were distinguished because they arose in a different statutory context. Case-Laws Income Tax Wed, 11 Jul 1979 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=37480