2007 (5) TMI 217

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.... S. K. Mukhi, Advocate,for the assessee. JUDGMENT The judgment of the court was delivered by M.M. KUMAR, J. - This order shall dispose of I.T.R. Nos. 82 of 1989, 64 of 1992, 18 and 19 of 1993 as identical questions of law have been raised. The controversy in the present bunch of references has emerged out of the orders passed by the Income Tax Appellate Tribunal, Amritsar Bench, Amritsar ....

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....e representing value of perquisite of concessional rate of interest charged on borrowings from Managing Director (29610/-) and Meeting Fees (2,400/-) which are clearly hit by proviso to section 40A(5)/40A(6) of the Income-tax Act, 1961?" 2. Whether on the facts and in the circumstances of the case and keeping in view the provisions of section 40(c) (A) of the Income-tax Act, 1961, the Income-ta....

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....sp; 2,81,565/- after making additions, inter alia, on account of disallowance under Section 40A(5)/40A(6) as well as disallowance on account of concessional interest charged from the Managing Director on the borrowings/drawings. The assessee filed an appeal before the Commissioner of Income Tax (Appeals), Jalandhar, who vide his order dated 18.2.1987, allowed the appeal of the assessee, inter alia....

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.... 201 ITR 723, has observed that in the case of Directors, who are also employees, both the provisions are attracted. Likewise, for determining permissible expenditure which is outside the ceiling limit, both these ceilings would be applicable. For the aforementioned proposition reliance may be placed on the judgment of Hon'ble the Supreme Court in the case of Commissioner of Income Tax v. Continen....