1995 (10) TMI 6

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.... Revenue, the following questions of law have been referred to this court by the Income-tax Appellate Tribunal, Ahmedabad Bench-B, arising from its order ITR No. 1494/Ahd. of 1981, in respect of the assessment year 1978-79. "1. Whether, on the facts and in the circumstances of the case, the Tribunal was right in law in coming to the conclusion that claim of the assessee for the payment of royal....

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....he decision of the Commissioner of Income-tax (Appeals). At the hearing of the present reference, both the learned advocates agreed that the facts giving rise to question No. 1 are similar to the facts which had given rise to an identical question in Income-tax Reference No. 200 of 1983 in which we have answered the question as per our decision dated October 9, 1995 (CIT v. Ashoka Mills Ltd. [1....

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....s far as question No. 2 is concerned, the facts are that the Income-tax Officer while determining the value of remuneration for the purpose of disallowance under section 40 (c) of the Income-tax Act ("Act" for short) included the reimbursement of medical expenses for the managing director. In appeal, the Commissioner of Income-tax (Appeals) directed the Income-tax Officer to exclude a sum of Rs. 9....

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....)(i) provides that in the case of any company any expenditure which results directly or indirectly in the provision of any remuneration or benefit or amenity to a director or to a person who has a substantial interest in the company or to a relative of the director or of such person shall not be allowable deduction if that deduction in respect of the aggregate of such expenditure and allowances in....