2015 (4) TMI 1318

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....ri. N. Nischal, IRS, JCIT. For the Respondent : Shri. G. Gopalan, Retired JCIT. ORDER PER CHANDRA POOJARI, ACCOUNTANT MEMBER This appeal by the Revenue is directed against the order of the Commissioner of Income Tax (Appeals)-III, Chennai, dated 23.10.2014. The Revenue has raised the following ground:- "2. The learned CIT(A) has erred in deleting the disallowance u/s.36(1) (ii....

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....g the business income of an assessee. Different items of such expenses are enumerated under different clauses provided in sub-section(1) of section 36. One of such expenditure entitled to be deducted in computing the business income of an assessee is any sum paid to an employee as bonus or commission for services rendered. But the deduction is not available in a case where such payment of bonus or....

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....g director of the assessee company, is an employee of the assessee or not. He found that Shri Ravichandran, who is the managing director of the assessee-company, is not an employee of the assessee. He is the managing director of the assessee-company vis-a-vis a permanent director. There is no employee-employer relationship between Shri Ravichandran and the assessee company. Shri Ravichandran holds....

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....at the commission has been paid on the basis of the turnover; but still the payment was in the nature of salary for services rendered by Shri Ravichandran. The Commissioner of Income-tax(Appeals) also held that there is no force in the argument of the Assessing Officer that no marketing efforts are necessary to sell the flats constructed by the assessee, as the assessee-company enjoys a very famou....