https://www.taxtmi.com/caselaws?id=14618 The High Court addressed disallowances under sections 40(c) and 40A(5) of the Income-tax Act. It clarified that cash payments should be considered as salary for computing admissible perquisites, impacting the ceiling limit for disallowance under section 40(c). The Court ruled that cash payments for medical reimbursements do not fall under section 40A(5). Club subscriptions were disallowed as not correlating to legitimate business needs, while the issue of house rent allowance remained unanswered. The judgment emphasized the distinction between payments to directors and employees, providing specific rulings based on the case's circumstances. en-us Sat, 18 Apr 1998 00:00:00 +0530 Fri, 17 Jul 2009 15:54:46 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=14618 The High Court addressed disallowances under sections 40(c) and 40A(5) of the Income-tax Act. It clarified that cash payments should be considered as salary for computing admissible perquisites, impacting the ceiling limit for disallowance under section 40(c). The Court ruled that cash payments for medical reimbursements do not fall under section 40A(5). Club subscriptions were disallowed as not correlating to legitimate business needs, while the issue of house rent allowance remained unanswered. The judgment emphasized the distinction between payments to directors and employees, providing specific rulings based on the case's circumstances. Case-Laws Income Tax Sat, 18 Apr 1998 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=14618