Allowing the appeal of the assessee the Tribunal held that ;restriction of allowance would apply only to an employee who is also share in company .Payment made to agent who is not an employee during the relevant year. Disallowance cannot be made . ( AY.2009-10)
Nat Steel Equipment (P.) Ltd. v. DCIT (2018) 171 ITD 482/ 171 DTR 49 /195 TTJ 796 (Mum) (Trib.)
S. 36(1)(ii):Bonus or commission- Restriction of allowance would apply only to an employee who is also share in company -Payment made to agent who was an MD of company in earlier years and in the relevant year he was not an employee -Disallowance cannot be made .