2010 (1) TMI 1318

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....kant Parikh, AR. ORDER PER MAHAVIR SINGH, JUDICIAL MEMBER:- This appeal by the Revenue is arising out of the order of Commissioner of Income-tax (Appeals)-I, Baroda in appeal No. CAB/I/159/08-09 dated 04-08- 2009. The assessment was framed by the ITO, Ward-1[4], Baroda u/s. 143(3) r.w.s. 147 of the Income-tax Act, 1961 (hereinafter referred to as 'the Act') vide his order dated 05-12....

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.... Accordingly, AO allowed Director's remuneration to the extent of Rs. 13.09 lakhs and disallowed the balance of Rs. 5.82 lakhs. The CIT (A) deleted the addition by giving following finding in para-6.3 of his appellate order:- "6.3 I have considered the submissions of the ld. AR and facts of the case. Director's remuneration is governed by Schedule-XIII of the Companies Act. As p....

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....3,381/-. Against this, the company has paid only Rs. 10 lacs. It is also worth noting that even in the case of a loss making company, Schedule-XIII for the Companies Act permits monthly remuneration up to Rs. 1 lac. It is also noteworthy that the Director accepted a cut in remuneration when the company was not faring well. It is therefore not unreasonable for the company to grant him an ....