1989 (8) TMI 51

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....this petition, the Commissioner of Income-tax is seeking reference of the following question of law to this court: "Whether the Income-tax Appellate Tribunal was correct in law and on facts in confirming the order of the Commissioner of Income-tax (Appeals) that as the remuneration of the employee, Shri Deepak Shriram, has been approved by the Company Law Board, the question of considering it u....

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....er section 40A(2). further appeal was filed by the Department before the Income-tax Appellate Tribunal. The Tribunal came to the conclusion that the provision Rs of section 40A(2) were not applicable in view of the decision of the Company Law Board who had approved the salary of the said employee. The petitioner then sought reference under section 256(1), but the said application was rejected. ....

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....ard has the jurisdiction and authority to fix the remuneration, when approval is sought under the provisions of section 637AA of the Companies Act, 1956. The various factors which have to be taken into consideration while granting such approval are set out in the said section. One of the factors which has to be considered is the professional qualifications and experience of the individual in respe....