Increase in turnover cannot be the sole criteria for steep increase in remuneration payable to director

RELEVANT PARAGRAPHS: 15. In so far as the assessee’s contention that as the remuneration paid to the directors were increased in a properly called meeting of the Board of Directors, such payment is to be considered as reasonable and not excessive, we are of the view that this contention of the assessee would be of no much assistance to the assessee as discussed hereafter. There is no dispute in the fact that the Board of Directors consist of only four directors, to all of whom the remunerations at the same rate have been paid by the assessee company. It is also an admitted in position th...