Issues in Corporate Taxation. - jb nagar cpe study circle of wirc of icai
Issues in Corporate Taxation. - jb nagar cpe study circle of wirc of icai
Issues in Corporate Taxation. - jb nagar cpe study circle of wirc of icai
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Arguments<br />
Assessee’s arguments<br />
Commission paid due to hard work by<br />
directors result<strong>in</strong>g <strong>in</strong> substantial pr<strong>of</strong>it<br />
No dispute with respect to render<strong>in</strong>g <strong>of</strong><br />
services and reasonableness <strong>of</strong> payment<br />
Department’s arguments<br />
No evidence <strong>of</strong> extra services rendered by<br />
directors<br />
No such commission to other employees<br />
Reasonable <strong>of</strong> amount not a relevant<br />
factor for disallowance under Section<br />
36(1)(ii)<br />
Expression “payable” means that<br />
shareholder should have right to receive<br />
dividend. Payment <strong>of</strong> dividend is<br />
discretionary and not mandatory<br />
August, 2011<br />
CA Sanjeev Lalan, S<strong>in</strong>grodia Goyal & Co.<br />
Presentation at JB Nagar CPE Study Circle<br />
20