https://www.taxtmi.com/caselaws?id=56702 The Tribunal remanded the case for a fresh determination on the deduction of guarantee commission paid to directors. The CIT (Appeals) later found the 1% commission reasonable based on legitimate business needs. The Department contested, alleging lack of approval under Section 310 of the Companies Act, excessive payment, and no services rendered. The Tribunal held that Section 310 did not apply as the payment was a guarantee commission, not remuneration, and upheld the adequacy of the 1% commission. The departmental appeals were dismissed, affirming the CIT (Appeals) decision. en-us Sat, 06 Dec 1980 00:00:00 +0530 Mon, 06 Dec 2010 13:46:35 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=56702 The Tribunal remanded the case for a fresh determination on the deduction of guarantee commission paid to directors. The CIT (Appeals) later found the 1% commission reasonable based on legitimate business needs. The Department contested, alleging lack of approval under Section 310 of the Companies Act, excessive payment, and no services rendered. The Tribunal held that Section 310 did not apply as the payment was a guarantee commission, not remuneration, and upheld the adequacy of the 1% commission. The departmental appeals were dismissed, affirming the CIT (Appeals) decision. Case-Laws Income Tax Sat, 06 Dec 1980 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=56702