In the year of account ending June 30, 1958, the assessee debited an amount of Rs.
11,436.
Under Article 42 of its articles of association, remuneration payable to the managing director and the deputy managing director of the assessee was fixed at 30 of the annual net profits subject to the minimum of Rs.
54,670 as remuneration for the managing director and the deputy managing director, and disallowed the balance of Rs.
He was of the view that the allowance paid to the two directors was excessive or unreasonable having regard to the legitimate business needs of the companypany and the benefit derived by or accruing to it therefrom.
5,000.
In second appeal, the Tribunal held that the Income tax Officer had jurisdiction under Section 10 4A to determine the reasonableness of the claim for remuneration paid to the two directors and on the materials on the record he was justified in disallowing the amount of Rs.
For the assessment year 1959 60 the Income tax Officer while companyputing the taxable income in exercise of his power under Section 10 4A of the Income tax Act allowed only Rs.
11,436.
66,106 paid to the managing director and the deputy managing director.
The Appellate Assistant Commissioner companyfirmed the order.
The assessee is a private limited companypany carrying on business in mica mining .
C. Shah, J. This, appeal is filed with certificate under Section 66A 2 of the Indian Income tax Act, 1922.
