Director Salary & Incentives: IT Act Section 40A(2)(a)

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

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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1 Year PLAN

1999

(Excl. of GST ₹359)

2 Years PLAN

3499

(Excl. of GST ₹629)

BEST VALUE

3 Years PLAN

4999

(Excl. of GST ₹899)

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Attached File : 1442821_4386_1630584990_5199_changex_services_pvt_ltd_.pdf

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Judgement posted by

Poojitha Raam Vinay

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I simplify complex income tax, TDS, banking, and investment updates into practical insights for taxpayers, salaried professionals, pensioners, and senior citizens. I regularly write on ITR filing, tax compliance, savings schemes, and the latest financial rule changes in India.

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