Commission to Director based on % of Profit is allowable in year of Profit Determination

D.C.I.T. Vs. M/s. Associated Pigments Ltd. (ITAT Kolkata) Commission to Director based on % of Profit is allowable in the year of Profit Determination The Ld. Counsel contended that the commission was payable by the assessee company to its Managing Director @ 1% of the profits of the concerned financial year. He has contended that since the profit of the financial year 2009-10 was determined only in the financial year 2010-11 after finalizing the account, the allow ability on account of commission was crystallized only in the financial year 2010-11 relevant to assessment year 2011-12. We find ...