Disposed

The C.I.T.B.C-Ii. v. Biddle Sawyer Pvt.Ltd.

Bombay HC22 Mar 2005ITR/490/1998

Case brief

AI extract

What is this about?

The High Court answered a reference question regarding the applicability of section 40(c) versus section 40A(5) of the Income-Tax Act, 1961, for disallowance of payments to employee-directors. The Court held that the previous decision in Hico Products applies and the Tribunal's view was correct.

What did the court decide?

The reference question was answered in favour of the assessee against the revenue.

The C.I.T.B.C-Ii. Vs Biddle Sawyer Pvt.Ltd. — Income Tax | Bombay HC (2005)

¶1

IN THE HIGH COURT OF JUDICATURE AT BOMBAY
ORIGINAL SIDE.

¶2

 INCOME TAX REFERENCE NO. 490 OF 1998..

¶3

 The Commissioner of Income-tax,
 Bombay City-II Bombay. .. Applicant,
 vs.
 Biddle Sawyer P.Ltd.
 .. Respondent.

¶4

 Shri A.S. Rao for the Applicant.
 None for the respondent.

¶5

 CORAM: V.C.DAGA &
J.P.DEVADHAR,JJ.
 DATED: 22-3-2005.
 P.C.

¶6

 1. Heard learned Counsel for the applicant. The
 Tribunal has referred the question for the opinion of
 this Court reading as under:

¶7

 " Whether on the facts and in the
 circumstances of the case, the tribunal was
 correct in law in holding that the
 dis-allowance, in respect of payment to
 employee-directors should be computred in
 accordance with the provisions of section
 40(c) of the Income-Tax Act, 1961 and not
 those of section 40A(5) of the said Act?"

¶8

 2. The above question has already been answered by

¶9

 the Division Bench of this Court in the case of C.I.T.
 vs. Hico Products Pvt.Ltd. (No.1) (1993) 201 I.T.R.
 567 (Bom.) in favour of the assessee and against the
 revenue. In this view of the matter, question stands
 answered in affirmative for the reasons stated in the
 case of Hico Products (P) Ltd. Reference, accordingly

¶10

 stands disposed of with no order as to costs.

The C.I.T.B.C-Ii. v. Biddle Sawyer Pvt.Ltd.

Case brief

What is this about?

What did the court decide?

The C.I.T.B.C-Ii. v. Biddle Sawyer Pvt.Ltd.

Case brief

What is this about?

What did the court decide?

What the court decided

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