https://www.taxtmi.com/caselaws?id=15789 Disallowance of remuneration/perquisites paid to a managing director under s. 40(c)(ii) and s. 40A(5) turned on whether s. 40A(5) applies to an employee-director. Applying SC authority, the HC held that both provisions apply and the higher of the two statutory ceilings governs; the Tribunal's contrary view was erroneous, and the AO was directed to recompute the disallowance accordingly. Eligibility for deduction under s. 80J turned on whether substantial expansion of an existing industrial unit, implemented in stages, could constitute "establishment" of an industrial undertaking. The HC held that phased additions pursuant to an industrial licence formed part of a single substantial expansion, with the relevant date being completion of expansion making the facility capable of independent production; the assessee's s. 80J claim was allowed. en-us Fri, 19 Feb 1999 00:00:00 +0530 Fri, 19 Dec 2025 14:49:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=15789 Disallowance of remuneration/perquisites paid to a managing director under s. 40(c)(ii) and s. 40A(5) turned on whether s. 40A(5) applies to an employee-director. Applying SC authority, the HC held that both provisions apply and the higher of the two statutory ceilings governs; the Tribunal's contrary view was erroneous, and the AO was directed to recompute the disallowance accordingly. Eligibility for deduction under s. 80J turned on whether substantial expansion of an existing industrial unit, implemented in stages, could constitute "establishment" of an industrial undertaking. The HC held that phased additions pursuant to an industrial licence formed part of a single substantial expansion, with the relevant date being completion of expansion making the facility capable of independent production; the assessee's s. 80J claim was allowed. Case-Laws Income Tax Fri, 19 Feb 1999 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=15789