Bonus paid, in lieu of the dividend, disallowed under section 36(1)(ii)

 SRC Aviation Pvt. Ltd. Vs ACIT (Delhi High Court)

Facts- The appellant is a private limited company. Sh. Arvind Chadha and Sh. Anoop Chadha are two share-holders and directors holding 50% equity shares each since inception of the company. In the Assessment year 2011-2012, the company has paid bonus of Rs.1 crore each to both the directors. Similarly, in the assessment year 2014-2015 the company has paid bonus of Rs.1.5 crore each to both the Directors. Assessing Officer disallowed the same

Please become a Premium member. If you are already a Premium member, login here to access the full content.