Held that salaries paid relative of promoter cannot be disallowed merely he is relative of promoter. The Assessing Officer is not entitled to decide reasonableness and commercial expediency of expenditure. Followed S.A Builders Ltd v. CIT (A) (2007) 288 ITR 1 (SC) CIT v. Dalmia Cement (B) Ltd (2002) 254 ITR 377 (Delhi)(HC). (AY. 2011-12 to 2013-14)
ACIT v. Claridges Hotels Pvt. Ltd. (2021) 86 ITR 402 (Delhi)(Trib.)
S. 37(1) : Business expenditure-Salaries paid-Relative of promoter-No disallowance can be made-The Assessing Officer is not entitle to decide reasonableness and commercial expediency of expenditure.