Periodic payments are covered under section 40(c)(iii) but Lumpsum Payment are not : HC

Brief of the Case Bombay High court held In the case of M/s Nagpur Engineering Co. Pvt. Ltd. vs. CIT. that in order to attract ceiling u/s 40(c), the payment must be a periodical payment. A Lumsum payment or one time payment is not covered under section 40(c) of Income Tax Act, 1961. Facts of the Case In this case, company makes commission payments to his directors over and above the remuneration paid to them. While assessment, AO calculated the reasonable figure of commission and disallowance made u/s 40(c)(iii). Disallowance was upheld by the CIT(A) and ITAT. The following two questions have...