High Court: Investment allowance on forex fluctuation costs allowed. Rule 6D deduction per employee. Director medical expenses part of remuneration. Staff entertainment not disallowed.

The High Court of Madras held that the assessee was entitled to investment allowance on foreign exchange fluctuation costs for the assessment year 1985-86. The court also ruled that the deduction under rule 6D should be applied separately for each employee travel, and reimbursed medical expenses for a director were considered part of remuneration for disallowance calculation. Furthermore, entertainment expenditure attributable to staff was excluded from disallowance under section 37(2A) of the Act for the same assessment year.

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The High Court of Madras ruled on various questions regarding income tax appeals for the assessment year 1985-86. The court held that the assessee was entitled to investment allowance on foreign exchange fluctuation costs. It was also determined that the deduction under rule 6D should be applied separately for each travel undertaken by an employee. Additionally, reimbursed medical expenses for a director were considered part of remuneration for computing disallowance. Finally, entertainment expenditure attributable to staff was excluded from disallowance under section 37(2A) of the Act for the assessment year 1985-86.

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