Deduction U/s 36(1)(ii) allowable on bonus paid to directors

Candor Business Solutions P. Ltd. Vs ITO (ITAT Bangalore)

Conclusion: Where bonus has been paid to directors for the services rendered and as part of a payment of employment, deduction of the same was to be allowed u/s. 36(1)(ii).

Held: AO disallowed amount of bonus to director-shareholders of the assessee company u/s. 36(1)(iii). In the present case, bonus was paid in addition to salary as a reward for services rendered by the two directors to assessee co

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