Held that Salaries paid to director cannot be disallowed on the ground that salaries paid in earlier year was less than the relevant year. The AO could not bring any material to demonstrate that the remuneration is excessive as per market rates. Disallowance is deleted.(AY. 2018-19)(ITA No. 1369/ Chny/ 2023 dt. 10-6 2024)
Egberts India Pvt Ltd (2024) Chamber’s Journal-July-P. 123 (Chennai)(Trib)
S. 40A(2) : Expenses or payments not deductible-Excessive or unreasonable-Salaries paid to director cannot be disallowed on the ground that salaries paid in earlier year was less than the relevant year-Burden is on revenue to demonstrate that the remuneration is excessive as per market rate-Disallowance is deleted.
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