Tribunal held that remuneration paid to directors which are beyond limits prescribed under the Companies Act, was claimed as business expenditure. Grants received from the holding company for paying remuneration to directors was rightly assessed by the Assessing Officer as income from other sources. (AY. 2013-14)
DCIT v. GBTL Ltd. (2021) 189 ITD 704 / 189 ITD 704 / 203 DTR 353 (Mum.)(Trib.)
S. 56 : Income from other sources-Amount received as grant from holding company for paying remuneration to directors beyond limits prescribed by Companies Act-Payment was claimed as deduction-Amount received was taxable as income from other sources. [S. 37(1)]