2025 (8) TMI 1171

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....agam, JCIT ORDER PER ABY T. VARKEY, JM: This is an appeal preferred by the assessee against the order of the Learned Commissioner of Income Tax (Appeals)/NFAC, (hereinafter in short "the Ld.CIT(A)"), Delhi, dated 28.05.2024 for the Assessment Year (hereinafter in short "AY") 2018-19. 2. The main grievance of the assessee is against the action of the Ld.CIT(A) disallowing the sum paid to Dire....

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....ectors and as per the Resolution passed by it dated 16.08.2016 [Page No.62 of the paper book] it was decided that the Directors of the company shall be entitled to performance bonus of Rs. 2 lakhs each, if the targeted turnover of Rs. 1 Cr was achieved. Since the company has attained its target of Rs. 1 Cr. turnover as on 31.03.2018, the Directors where entitled to such 'performance bonus' and hen....

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....ployee-Directors who are working whole time for the company; and it is noted that turnover of the assessee has reached Rs. 1 Crs. only in the relevant Financial Year 2017-18 i.e. [AY 2018-19] to the tune of Rs. 1,26,44,204/- after 8 years of incorporation and both the Directors were only drawing monthly remuneration of Rs. 22,000/- each [total Rs. 5,28,000/-] for both the Directors. It has been br....