Commission to promoter-director not deductible where no separate business nexus was proved beyond existing remuneration.

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....Commission paid to a promoter and full-time working director was held not deductible where the assessee failed to show a direct nexus between the payment and services separate from his ordinary duties. The Tribunal found that his day-to-day involvement in marketing and business development fell within his existing role, and that a turnover-linked commission capped in amount was not justified as an independent business outgo when salary and remuneration were already paid for the same work. Board and shareholder approval was not treated as conclusive, and the disallowance was restored.....