Treatment of salary and incentives paid to the Directors u/s 40A(2)(a) of the IT Act

Last updated: 11 September 2021
Quick Summary
This case concerns the disallowance of salary and incentives paid to directors under Section 40A(2)(a) of the Income Tax Act. The Assessing Officer disallowed the full amount, and the CIT(A) confirmed 75% of the addition. However, the Income Tax Appellate Tribunal ruled that disallowances under this section cannot be sustained without examining analogous cases. Consequently, the assessee's appeal was allowed.

Court :
ITAT Delhi

Brief :
The present appeal has been filed by the assessee against the order of ld. CIT(A)-2, New Delhi dated 11.05.2018.

Citation :
ITA No. 5199/Del/2018

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