https://www.taxtmi.com/caselaws?id=38711 Remuneration and bonus paid to directors were assessed by reference to the company's legitimate business needs and the benefit derived, rather than by isolating each item of expenditure. The High Court noted that an Income-tax Officer's view on excessiveness or unreasonableness must rest on objective considerations and may be interfered with only if based on irrelevant material or if perverse. On the facts, the directors had rendered valuable services, brought relevant experience, helped diversify the business, and increased business volume. The Tribunal was therefore justified in holding that no part of the remuneration or bonus was liable to be disallowed, and the bonus was not unreasonable under the Act. en-us Wed, 24 Mar 1976 00:00:00 +0530 Thu, 08 Apr 2010 15:06:55 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=38711 Remuneration and bonus paid to directors were assessed by reference to the company's legitimate business needs and the benefit derived, rather than by isolating each item of expenditure. The High Court noted that an Income-tax Officer's view on excessiveness or unreasonableness must rest on objective considerations and may be interfered with only if based on irrelevant material or if perverse. On the facts, the directors had rendered valuable services, brought relevant experience, helped diversify the business, and increased business volume. The Tribunal was therefore justified in holding that no part of the remuneration or bonus was liable to be disallowed, and the bonus was not unreasonable under the Act. Case-Laws Income Tax Wed, 24 Mar 1976 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=38711