Disallowance of Excess Remuneration to Directors: Section 40A(2)(b) cannot be invoked without corroborative evidence

Carmel Softech Pvt. Ltd. Vs ITO (ITAT Chennai) We noted that the Tribunal in the case of The Bombay Samachar Pvt. Ltd., supra, has considered the issue of applicability of provisions of section 40A(2)(b) of the Act to the directors remuneration and held that this provision will not apply to the directors payment for holding that the payment is excessive or unreasonable in the absence of any material brought on record to demonstrate that the payment is actually excessive or unreasonable having regard to market rate for the goods, services or facilities availed or the business need of the assess...