1984 (6) TMI 21

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....er under s. 256(2) of the I.T. Act, 1961, for direction to the Income-tax Appellate Tribunal, Indore Bench, to send the statement of the case and refer the following question of law to this court for its opinion: " Whether, on the facts and in the circumstances of the case, the ITAT was correct in law in allowing deduction of the commission paid to the four directors ? " The short facts givi....

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.... Companies Act, 1956, and the commission shall be divided amongst the directors in proportion to their shareholdings, allowed the claim in respect of this amount by setting aside the order of the ITO as also the CIT (Appeals). According to the learned counsel for the Revenue, as four of the directors of the respondent-company resigned just four days before the expiry of the period of the accoun....