Commission/bonus paid to the Directors of the assessee company for business expediency would not fall under section 36(1)(ii)

DCIT Vs. M/s CMR Design Automation Pvt. Ltd. (ITAT Delhi)- Assessee was paying Shri Mahesh Chandra as share holder a sum of Rs. 25 lacs per annum as salary. This compared very favourably with the salary being disbursed in the industry in which the assessee was placed. Moreover, all disbursements to Sh. Mahesh Chandra was cleared by Board Resolutions. The profit of the assessee company has also arisen phenomenally during the year. In other words, commission and bonus paid to Sh. Mahesh Chandra was an incentive, which was directly related to

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