https://www.taxtmi.com/caselaws?id=18857 The High Court of Bombay held that both sections 40(c) and 40A(5) are applicable to a director-employee, with the higher ceiling to be applied. The court ruled that gratuity is not covered under these sections but is deductible under section 37(1). The court directed the Tribunal to recalculate the disallowance amount, excluding gratuity and considering the Rs. 72,000 ceiling. No costs were awarded in the judgment concerning Income-tax Act, 1961 issues. en-us Fri, 17 Dec 1993 00:00:00 +0530 Mon, 02 Nov 2009 13:39:23 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=18857 The High Court of Bombay held that both sections 40(c) and 40A(5) are applicable to a director-employee, with the higher ceiling to be applied. The court ruled that gratuity is not covered under these sections but is deductible under section 37(1). The court directed the Tribunal to recalculate the disallowance amount, excluding gratuity and considering the Rs. 72,000 ceiling. No costs were awarded in the judgment concerning Income-tax Act, 1961 issues. Case-Laws Income Tax Fri, 17 Dec 1993 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=18857