Income-tax deduction for remuneration turned on factual assessment under amended excessive-payment tests, so no question of law arose.

The amended section 10(4A) of the Income-tax Act, 1922 made the Income-tax Officer's opinion the primary factor in deciding whether remuneration was excessive or unreasonable, subject to the company's legitimate business needs and the benefit derived by it. On the facts, the challenge concerned only the quantum of the allowance claimed as a deduction and turned on appreciation of evidence, with no indication that the statutory tests were ignored or applied capriciously. No question of law was made out for reference under section 66(2), and the application was dismissed.

---

---

Issues: Whether any question of law arose for reference under section 66(2) of the Income-tax Act, 1922 in relation to the disallowance of remuneration claimed as a deduction under the amended section 10(4A) of the Income-tax Act, 1922.

Analysis: The amended provision made the opinion of the Income-tax Officer the primary factor in determining whether an allowance was excessive or unreasonable, subject to the statutory guide of the legitimate business needs of the company and the benefit derived by it. The challenge in substance was only to the quantum allowed, which depended on appreciation of facts. The record did not show that the Income-tax Officer had gone outside the statutory tests or acted capriciously, so no legal issue was made out.

Conclusion: No question of law arose; the application was dismissed.

---