https://www.taxtmi.com/caselaws?id=459389 The ITAT Raipur allowed the assessee company's appeal against disallowance of director's remuneration under Section 40A(2)(a). The AO had restricted the deduction to Rs. 2.40 lakh, finding the remuneration excessive and unreasonable without adopting any prescribed basis or yardstick for verification. The CIT(Appeals) upheld the AO's view solely based on no substantial turnover increase and comparative decline in net profit, despite acknowledging the directors' full-time services helped scale down expenses and liquidate debtors. The ITAT set aside the CIT(Appeals) order and vacated the disallowance, ruling that without proper verification methodology, the restriction was unjustified. en-us Tue, 27 Dec 2022 00:00:00 +0530 Wed, 11 Dec 2024 18:57:13 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=459389 The ITAT Raipur allowed the assessee company's appeal against disallowance of director's remuneration under Section 40A(2)(a). The AO had restricted the deduction to Rs. 2.40 lakh, finding the remuneration excessive and unreasonable without adopting any prescribed basis or yardstick for verification. The CIT(Appeals) upheld the AO's view solely based on no substantial turnover increase and comparative decline in net profit, despite acknowledging the directors' full-time services helped scale down expenses and liquidate debtors. The ITAT set aside the CIT(Appeals) order and vacated the disallowance, ruling that without proper verification methodology, the restriction was unjustified. Case-Laws Income Tax Tue, 27 Dec 2022 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=459389