[aurangabad_ca] Allowability of payment of commission to non whole time directors under Income tax act
Dear Friends,
A company has passed a special resolution to pay the commission to its non whole time directors as per the limits prescribed under Companies Act, 1956. However the Assessing Officer while doing the assessment has asked the assessee to show cause why the commission paid to its non whole time directors should not be disallowed. The AO has opined that whatever is given in the Companies Act, a deduction of expenses can not be allowed for that under the Income Tax Act.
The directors of the company are independent directors and are renowned person in their profession like CA, lawyer, banker, technocrat etc.
Members are requested to share their views on the allowability of commission paid to non whole time directors by the company along with relevant case law, notification, circular etc. which supports their view.
With best regards,
CA brajesh agarwal
9818623388 (m)
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AURANGABAD_CA is a Yahoo Group for the benefit of CA and other professional. It is especially meant for written discussion within group members and circulate the information among its members. The mail may contain such research/advice/opinion/information/fact provided by any member or moderator and every contain of the mail or information of yahoo is always subject to the Accuracy and of the description of facts.
The Aurangabad_CA , its moderator/owner do not claim that contains in mail/information obtained after reading as a complete and accurate disclosure of relevant fact(s).
Considering all above facts m the transaction based on above mail may not complete without confirming proper statue/authority/person. Therefore any action/transaction taken on basis of this mail do not imply the accuracy or value . Further this Group�s Owner/Moderator/Member are not liable for any damages or costs suffered due to action/transaction based on information on this Yahoo Group.
For Seeking any Clarification you may mail only to Group Moderator on
girishkulk@gmail.com
MARKETPLACE
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