High Court ruling: Tribunal decisions on remuneration to directors and investment allowance examined

The High Court of Bombay ruled in a case where three questions were addressed by the Tribunal. The first question was decided in favor of the assessee, indicating that the Tribunal was not justified in refusing to admit an additional ground on remuneration to directors under section 37 versus section 40(c). The second question was resolved in favor of the Revenue, confirming that the Tribunal was justified in including commission in 'remuneration' under section 40(c). Lastly, the third question was also decided in favor of the Revenue, determining that the assessee was not eligible for investment allowance under section 32A for additional cost of imported assets due to exchange rate fluctuation.

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The High Court of Bombay addressed three questions referred by the Tribunal:

1. Tribunal was not justified in refusing to admit additional ground on remuneration to directors under section 37 vs. section 40(c).
2. Tribunal was justified in including commission in 'remuneration' under section 40(c).
3. Assessee not eligible for investment allowance under section 32A for additional cost of imported assets due to exchange rate fluctuation.

First question answered in favor of assessee, second in favor of Revenue, and third in favor of Revenue.

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