Enquiry to be made by AO under section 40A (2) (a) of IT Act in case payment of remuneration to director is excessive or unreasonable

RELEVANT PARAGRAPHS: 7. After going through the orders of the learned Members as well as the orders of the lower authorities, I am of the view that no dis allowance was required to be made for the reasons given hereafter. The question for consideration is whether on facts of the case, the dis allowance was justified in view of the specific provisions of section 40A(2)(a) of the Act. It would be appropriate to reproduce the relevant portion of the said provision below: 40A(1) – “the provisions of this section shall have effect notwithstanding anything to the contrary contained in an...