1995 (9) TMI 44

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....udible in remuneration while computing the disallowance under section 40(c) of the Act ? (2) Whether, on the facts and in the circumstances of the case, the Tribunal was right in law in coming to the conclusion that the amount of Rs. 25,125 paid as foreign exchange difference arising out of deferred payment of purchase price of machinery, was capital expenditure ? (3) Whether, on the facts and in the circumstances of the case, the Tribunal was right in law in holding that no depreciation is admissible in respect of machinery installed in earlier years for scientific research and development ? (4) Whether, on the facts and in the circumstances of the case, the Tribunal was right in law in holding that the payment of surtax is not ad....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....ors ? " The assessee has claimed an amount on account of telephone expenses at the residence of two managing directors and two other employees totalling to Rs. 12,834. Out of this amount, the Income-tax Officer has included half of the amount of telephone bills paid by the company in computing the remuneration, salaries, perquisites, benefits and amenities provided to these persons for the purposes of section 40(c) in the case of directors and section 40A(5) in case of employees for calculating maximum limit up to which remuneration paid to these persons could be considered as allowable expenditure. The order was confirmed by the Commissioner of Income-tax (Appeals). However, the Tribunal following its earlier decision in respect of the ....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....(c) in the case of any company-- (i) 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, as the case may be, (ii) any expenditure or allowance in respect of any assets of the company used by any person referred to in sub-clause (i) either wholly or partly for his own purposes or benefit ; if in the opinion of the Assessing Officer any such expenditure or allowance as is mentioned in sub-clauses (i) and (ii) is excessive or unreasonable having regard to the legitimate business needs of the company and the benefit derived by or accruing to it therefr....