On 11th March 2020 ITAT Delhi held that when the books of accounts have been rejected by the Assessing Officer, estimation of profit should be as per the material available on record. where the directors are the employees of the company and receive commission for services rendered to the company as per the resolution passed by the Board, the commission paid to the directors was part of the salary and cannot be considered for the purpose of disallowance u/s 36(1)(ii) of the Act.
When the books of accounts have been rejected by the Assessing Officer, estimation of profit should be as per the material available on record. where the directors are the employees of the company and receive commission for services rendered to…
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