https://www.taxtmi.com/caselaws?id=768222 Remuneration paid to a managing director under a pre-existing special-resolution appointment was treated as compliant with the Companies Act framework, including Schedule XIII and the transitional protection for continued payment for the remaining term, so Explanation 1 to section 37(1) was not attracted and the disallowance failed. The separate disallowance under section 40A(2)(b) also failed because the Revenue produced no objective comparables or other material showing the payment was excessive or unreasonable; reliance only on relative remuneration levels and qualifications was insufficient. The deletion of both disallowances was therefore sustained in favour of the assessee. en-us Wed, 19 Mar 2025 00:00:00 +0530 Thu, 03 Apr 2025 07:50:40 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=768222 Remuneration paid to a managing director under a pre-existing special-resolution appointment was treated as compliant with the Companies Act framework, including Schedule XIII and the transitional protection for continued payment for the remaining term, so Explanation 1 to section 37(1) was not attracted and the disallowance failed. The separate disallowance under section 40A(2)(b) also failed because the Revenue produced no objective comparables or other material showing the payment was excessive or unreasonable; reliance only on relative remuneration levels and qualifications was insufficient. The deletion of both disallowances was therefore sustained in favour of the assessee. Case-Laws Income Tax Wed, 19 Mar 2025 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=768222