MC Mowjee & Co. Private Limited Vs. ITO Ward-4(1)

Parties Involved

Facts Summary

The assessee, MC Mowjee & Co. Private Limited, filed its return of income on 16.10.2015 declaring a total income of ₹29,80,320/-. The return was processed under section 143(1) of the Income-tax Act, 1961 and the case was selected for limited scrutiny. The assessee complied with the statutory notices and the assessment was framed under section 143(3) of the Act on 07.12.2017. Subsequently, the assessee filed a rectification petition on 05.01.2018, which was allowed on 11.07.2018. However, the successor Assessing Officer initiated rectification proceedings and passed an order under section 154 of the Act on 22.04.2019, disallowing director remuneration of ₹31,35,000/- paid in cash. The appeal against this order was dismissed by the ld. CIT (A) due to a misconstruction of facts regarding the assessee’s age.…

Legal Issues

• 1. Whether the disallowance of director remuneration of ₹31,35,000/- under section 154 of the Act is valid.

Judgment Outcome

Decided in favour of Assessee.

Precedents Relied Upon

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