Directors’ Bonus vs. Dividend Misclassification: ITAT Orders Fresh Examination

Advertisement Pravin Engineering Pvt. Ltd Vs ACIT (ITAT Ranchi) The Income Tax Appellate Tribunal (ITAT), Ranchi, has sent the appeal of Pravin Engineering Pvt. Ltd. back to the Assessing Officer (AO) for a fresh examination. The case, related to the assessment year 2018-19, revolves around a ₹11.36 lakh commission paid to the company’s directors, which was initially disallowed by the AO. During the assessment, the AO noted that the company’s tax audit report had listed the directors’ commission under a section of Form 3CD that relates to sums “otherwise payable as pro...