TaxTMI 
TaxTMI 
2015 (11) TMI 294
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....ing the addition of Rs. 11,19,877/- made by A.O. on account of commission paid to the director by holding that the disallowance of commission is not in the guise of dividend without appreciating the fact that despite of the huge profits the assessee has not declared any dividend. 2. Whether on the facts and circumstances of the case and in law, the Ld. CIT(A) was justified in deleting the addition of Rs. 11, 19,877/- made by A.O. on account of commission paid to the director without appreciating the fact that the commission paid ix] s. 36(1)(ii) is disallowable when the commission is paid instead of dividend. 3. Whether on the facts and circumstances of the case and in law, the Ld. CIT(A) was justified in deleting the addi....
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....ary paid to him which amounts to 5% of the net profit of the company and the said payment is also in terms with the provisions of Companies Act, 1956 It was also submitted that the commission payment was authorised by board resolution dated 30th June 2009. The Assessing Officer, however, was not satisfied with the explanation of the assessee. He was of the view that the assessee in the garb of commission has distributed its profit to the shareholders without treating it as dividend and paying dividend distribution tax thereon. Following a decision of the Tribunal, Mumbai Bench, in Dalal Brocha Stock Broking Pvt. Ltd., [TS-287-ITAT-2011 (MUM.)], he ultimately disallowed the commission paid and added it back to the income of the assessee. Bei....
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....mmunication Pvt. Ltd. v/s CIT, ITA no.306 of 11, order dated 8th July 2011, and in the case of CIT v/s Convertech Equipments Pvt. Ltd., ITA no.669/2012, dated 3rd December 2012, wherein it was held that if commission is paid towards services rendered by the director as per terms of appointment, then no disallowance could be made by treating it as dividend. Accordingly, he deleted the addition. 6. While the learned Departmental Representative relied upon the reasoning of the Assessing Officer, the learned Counsel for the assessee strongly supported the findings of the first appellate authority. 7. We have considered the submissions of the parties and perused the material available on record. As can be seen, the Assessing Officer has di....
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.... Rs. 12,21,098. The Assessing Officer disallowed the plantation expenses of Rs. 12,21,098, opining that the expenditure is going to get enduring benefit to the assessee. He further observed, as the assessee is not into plantation business the expenditure cannot be considered as revenue in nature. The assessee challenged the disallowance before the first appellate authority. 10. The learned Commissioner (Appeals) having considered the submissions of the assessee in the light of the facts on record, found that the expenditure incurred was primarily for the purpose of environmental safety and pollution control. He found that the assessee had to incur such expenditure for planting citrus tree to reduce pollution caused by the factory to the ....