TaxTMI 
TaxTMI 
1990 (10) TMI 46
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....of the Revenue, the Incometax Appellate Tribunal has referred the following question of law for the decision of this court : " Whether, on the facts and in the circumstances of the case, section 36(1) (ii) is inapplicable to the case ? " The respondent is a company. It is an assessee to income-tax. We are concerned with the assessment year 1978-79, for which the previous year ended on December 3....
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....and so it is not hit by the first proviso to section 36(1)(ii) of the Income-tax Act. The appeal filed by the Revenue was dismissed. It is thereafter at the instance of the Revenue, that the question of law formulated herein above has been referred for the decision of this court. We heard counsel for the Revenue, Mr. P. K. R. Menon, as also counsel for the respondent/assessee. To what extent the ....
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.... section 36(1)(ii) of the Act provided the following conditions are fulfilled. The amount should be reasonable with reference to (a) the pay of the employee and the conditions of his service ; (b) the profits of the business or profession for the previous year in question ; and (c) the general practice in similar business or profession. The Appellate Tribunal has failed to evaluate the question th....