Commissioner of Income Tax vs A.H. Wheelers and Co. Ltd.

We have heard Sri A.N. Mahajan, learned standing counsel and find that in respect of the Assessment Year 1985-86 this Court in IT Appeal No. 133 of 1996 relating to the same assessee called for identical questions of law, which have been raised in the present application. We, accordingly, allow the application and direct the income tax Appellate Tribunal, Allahabad to draw up statement of case and refer the following questions of law for opinion of this Court:

1 Whether on the facts and in the circumstances of the case, the Hon''ble income tax Appellate Tribunal was right in law, in holding that the commission paid to the Managing Directors for the Assessment Years 1987-88 has to be excluded for the purpose of calculation u/s 40(c) read with section 40A(5) of the income tax Act?

2 Whether on to facts and in the circumstances of the case, the Hon''ble I.T.A.T. was right in law, in holding that gratuity contribution, provident fund contribution and superannuation contribution paid to the directors are also to be excluded from the computation of remuneration and these amounts are not covered by section 40(c) of the income tax Act?