2012 (12) TMI 1151

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....nal (ITAT) dated 18.05.2012 whereby the CIT(A)?s order, setting-aside the addition made under Section 36(1)(ii) of the Income Tax Act, was set-aside. The facts are that the assessee had paid commission and ex-gratia(bonus) to its Managing Director, Sh. J.S. Kapoor to the tune of Rs. 1,71,29,375/-. The assessee had shown a profit in excess of Rs. 3.66 crores and has paid commission and ex-gratia (....

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....payment alone is essential and the excessiveness thereof can be gone into only under the provisions of Section 40A(ii) of the Act and the AO did not invoke the said provisions". On the basis of foregoing discussion, we are of the view that the commission and ex-gratia paid to Managing Director Sh. J.S. Kapoor was undoubtedly part of his remuneration for the services rendered by him supported by ....