Shri Faraz G. Joshi\u00a0 \u00a0was a promoter-Director of assesse company since 1972.\u00a0 In response to specific query during search as to who looked after assesse company on day-to-day basis, he answered that he was not aware about who actually looked after day-to-day business activity since for last 6 years, he was not attending office and he was involved only in consultation.\u00a0 On basis of this statement, Assessing Officer disallowed remuneration paid to Shri Faraz G. Joshi\u00a0 \u00a0by assessee company Tribunal held that answer of Shri Faraz G. Joshi quite reasonable and held that no adverse inference could be drawn therefrom.\u00a0 Tribunal held that services were rendered by FJ and, hence, remuneration paid to him was allowable under section 37(1). High Court affirmed the order of the Tribunal. Followed Sassoon J. David & Co. (P.) Ltd.\u00a0v.\u00a0CIT\u00a0(1979) 118 ITR 261 (SC). (AY.\u00a0 2007-08)<\/p>\n","protected":false},"excerpt":{"rendered":"
S. 37(1) : Business expenditure-Wholly and exclusively-Remuneration paid to promoter-Director-Consultation-Allowable as deduction though not attended the office for six years. <\/p>\n","protected":false},"author":3,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":"","jetpack_post_was_ever_published":false},"categories":[21],"tags":[],"class_list":["post-19386","post","type-post","status-publish","format-standard","hentry","category-income-tax-act"],"acf":[],"jetpack_featured_media_url":"","jetpack_shortlink":"https:\/\/wp.me\/p9S2Rw-52G","jetpack-related-posts":[],"jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts\/19386","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/users\/3"}],"replies":[{"embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/comments?post=19386"}],"version-history":[{"count":1,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts\/19386\/revisions"}],"predecessor-version":[{"id":19387,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts\/19386\/revisions\/19387"}],"wp:attachment":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/media?parent=19386"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/categories?post=19386"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/tags?post=19386"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}