2014 (9) TMI 283

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....s is a reference made under section 256(1) of the Income Tax Act, 1961. Pursuant to the request of the assessee that the four questions be framed and to be referred to this Court, two questions were declined since the Tribunal found those essentially pertaining to findings of fact. For the sake of convenience, the two questions referred to this Court are referred to as question no.2 and 3 and are ....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....g to Rs. 1,24,878/- (actual remuneration Rs. 1,56,701/- minus Rs. 31,823/- separately disallowed by the Assessing Officer u/s. 40A(5)?" 2. As far as question No.2 is concerned, the same pertains to disallowance of deduction towards exchange rate fluctuation amounting to Rs. 45,32,050/- in the computation of the assessee's business profits, on the basis that such deduction can be claimed only ....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....x Reference No.23 of 1993 pertaining to R.A. No.861 of 1992 in the case of this very assessee. This Court has by the order dated August 12, 2005 decided this issue in favour of the assessee, holding that the claim for allowance of its Managing Director's remuneration in the computation of business profits is permissible. This was based on the statement made in the Hon'ble Supreme Court in ....