Excess Managerial Remuneration Disallowance Contested; Default Under Companies Act Not a Justification for Tax Calculation.

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....Disallowance on account of excess claim of managerial remuneration u/s 40A - Even though the appellant company may be deemed as Public Limited Company under the Companies Act, 1956 and had made default under that Act, it could not be the sole reason for making disallowance of managerial remuneration for computing the taxable income of the assessee....