2008 (1) TMI 317

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....erred the following questions of law under Section 256 (1) of the Income Tax Act, 1961 (for short "the Act") for the assessment year 1981-82 for the opinion of this Court:- In ITR No. 102 of 1992 "1. Whether, on the facts and in the circumstances of the case, the Tribunal was right in holding that, although the Income Tax Reference Nos. 102 & 103 of 1992 2 provisions of Section 40 (c) are specific, the provision of Section 40A (5) are applicable for the purpose of disallowance out of director's remuneration? 2. Whether on the facts and circumstances of the case, the Tribunal was right in treating the amount of commission paid to the director and the amounts of Rent, Electricity, Water and fuel bills paid by the director as forming part o....

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....itled to a deduction of Rs. 72,000/- per annum in respect of salary remuneration paid to its Directors under sub-section (5) (a) of Section 40A of the Act. It was also held that since the assessee's case is covered under Section 40A (5) of the Act, the amount of rent, electricity bill, water bill and fuel bill would be treated as perquisite in the hands of the director. The computation of the total salary as made by the IAC (A) was correct. The Tribunal also agreed with the findings recorded by the CIT (A). 5. As far as consideration of the commission paid to the director on the turnover is concerned, the issue has already been considered by Hon'ble the Supreme Court in Commissioner of Income-Tax v. Indian Engineering and Commercial Corpor....