No Disallowance U/s. 40A(2) if Personal Tax already paid on Remuneration

DCIT Vs Bombay Samachar Pvt. Ltd. (ITAT Mumbai)

Conclusion- Payment of high remuneration to Directors cannot be disallowed by treating the same as a tool to shift profits to evade tax when the Directors have already offered the income for tax through their personal returns.

FACTS –

Assessee is engaged in publishing newspaper and is carrying on such activity for more than 150 years. In the year 2007, asse

Please become a Premium member. If you are already a Premium member, login here to access the full content.