https://www.taxtmi.com/caselaws?id=63413 The Tribunal remitted the case back to the CIT for fresh disposal, requiring an investigation into the prospects of recovery regarding the disallowance of Rs. 50,400 as business loss due to embezzlement. The Tribunal directed the insurance premium paid for Directors to be allowed as a deduction under section 37 of the I.T. Act. Bonus of Rs. 1,38,135 was allowed as it was paid based on individual performance. Gardening expenses of Rs. 21,640 were allowed as essential business expenditures. The matter regarding the commission paid to Samrat Udyog was remitted back to the CIT for further examination. The Tribunal upheld the application of section 40(c) for limiting the remuneration of employee Directors. The foreign travel expenses of Rs. 14,117 were to be allowed if solely for business purposes. 50% of electricity and water charges for Directors' residences were allowed due to the business connection. Deductions under both sections 35B and 80HHC were allowed as there was no prohibition against claiming both if conditions were met. en-us Fri, 24 Nov 1989 00:00:00 +0530 Sat, 29 Jan 2011 18:13:37 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=63413 The Tribunal remitted the case back to the CIT for fresh disposal, requiring an investigation into the prospects of recovery regarding the disallowance of Rs. 50,400 as business loss due to embezzlement. The Tribunal directed the insurance premium paid for Directors to be allowed as a deduction under section 37 of the I.T. Act. Bonus of Rs. 1,38,135 was allowed as it was paid based on individual performance. Gardening expenses of Rs. 21,640 were allowed as essential business expenditures. The matter regarding the commission paid to Samrat Udyog was remitted back to the CIT for further examination. The Tribunal upheld the application of section 40(c) for limiting the remuneration of employee Directors. The foreign travel expenses of Rs. 14,117 were to be allowed if solely for business purposes. 50% of electricity and water charges for Directors' residences were allowed due to the business connection. Deductions under both sections 35B and 80HHC were allowed as there was no prohibition against claiming both if conditions were met. Case-Laws Income Tax Fri, 24 Nov 1989 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=63413