Reimbursement of medical expenses to directors & employees not disallowed under Income-tax Act

The High Court of Bombay held that reimbursement of medical expenses to directors and employees was not subject to disallowance under sections 40(c)(i) and 40A(5) of the Income-tax Act, 1961. The judgment favored the assessee with no costs awarded.

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The High Court of Bombay ruled on a case involving reimbursement of medical expenses to directors and employees. The court held that the expenses were not subject to disallowance under sections 40(c)(i) and 40A(5) of the Income-tax Act, 1961, based on a previous decision. The judgment favored the assessee with no costs awarded. (Case citation: 1989 (9) TMI 10 - BOMBAY High Court)

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