High Court interprets limit for employee-directors under sec 40A(5)(a) proviso, not clause (c) limit

The High Court of Bombay ruled in favor of the assessee, interpreting that the ceiling of Rs. 72,000 under the proviso to section 40A(5)(a) applies to employee-directors, not the limit under clause (c), based on a prior judgment in a similar case.

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The High Court of Bombay ruled in favor of the assessee in a case involving the interpretation of section 40A(5)(a) of the Income-tax Act, 1961. The court held that the ceiling of Rs. 72,000 under the proviso to section 40A(5)(a) would apply to employee-directors, rather than the limit under clause (c). This decision was based on a previous judgment in a similar case.

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