TaxTMI 
TaxTMI 
2011 (11) TMI 47
X X X X Extracts X X X X
X X X X Extracts X X X X
....company was started by four persons, who were also its Directors, viz., (i) Mr. Ambuj Sharma, who has a Master's degree in Mechanical Engineering from IIT Roorkee; (ii) Mr. R. Srinivasan, who has a Bachelors Degree in Production Engineering from Bharathiar university, Coimbatore; (iii) Mr. S. Nakkeeran, who has a Master's degree in Mechanical Engineering in Designs from Anna University, Tamil Nadu and (iv) Mr. B. Sridhar, who has a Bachelor degree in Electricals and Electronics from BITS, Pilani (Rajasthan). 2. Vide Board's resolution dated 21.3.2005, the following remuneration was fixed by the appellant as payable to its Directors for Financial Year 2005-06 (relevant to the Assessment Year 2006-07): (i) Mr. Ambuj Sharma ....
X X X X Extracts X X X X
X X X X Extracts X X X X
....urns (ITRs) of the aforesaid two Directors, viz., Mr. S. Nakkeeran and Mr. B. Sridhar. Whereas the disallowance of Rs. 2,00,000/- out of the consultancy fee paid to Mr. Ambuj Sharma, was made by the AO on the ground that the said Director had claimed expenses against the consultancy fee in his return of income tax. 6. The appellant/assessee filed appeal against the aforesaid order before the CIT (A). It was argued that the AO failed to appreciate that the assessee had paid salary and consultancy fees to different Directors. It was submitted that the assessee had paid Rs. 2,00,000/- to one Director, viz., Mr. R. Srinivasan whereas consultation fee was paid to the remaining three Directors, viz., Mr. Ambuj Sharma, Mr. S. Nakkeeran an....
X X X X Extracts X X X X
X X X X Extracts X X X X
....rectors were earlier working with the blue chip companies like, NIIT, Hero Honda, Mechanical Dynamics (USA) before joining hands and starting the assessee company on their own. It was also assessed that if they had not formed this company and were doing a job, each of them could fetch a salary of more than Rs. 1 lac per month, while the assessee company was paying them much lesser. It was further submitted that similar remuneration was paid to all the Directors in the earlier years also and were never disallowed. It was further submitted that the entire business of the assessee company right from the marketing to the project execution was done by all the Directors themselves and no other highly qualified person was employed in the company. ....
X X X X Extracts X X X X
X X X X Extracts X X X X
....ounsel for the appellant was that the Tribunal had not considered various pertinent aspects and had also proceeded on wrong presumption. His entire thrust, therefore, was that the matter be remitted back to the Tribunal for afresh consideration in view of the judgment of this Court in Mayur Recreational Dev Services Ltd. Vs. CIT, 313 ITR 190. Learned counsel reiterated the submissions were where advanced before the Authorities below and noted above. He referred to the Board's resolution for remuneration and salary to be paid to the Directors and submitted that there were following factual inaccuracy in the order of the Tribunal: (1) The Tribunal has noted that "we find that this is an admitted position that this payment of consultancy fees....