Commissioner of Income Tax vs Hico Products (P.) Ltd.

DR. B.P. Saraf, J.—u/s 256(1) of the Income Tax Act, 1961, at the instance of the Revenue, the following question has been referred by the Income Tax Appellant Tribunal for our opinion :

"Whether, on the facts and in the circumstances of the case, the Tribunal was right in law in holding that in the case of employee-directors, the provisions of section 40A(5)(a) and the ceiling or limit contemplated therein under clause (c) would not apply but the ceiling of Rs. 72,000 contained in the proviso to section 40A(5)(a) read with section 40(c) would be applicable and consequently in vacating the Commissioner''s order u/s 263 ?"

It is stated at the Bar that a similar question has already been decided in favour of the assessee in the assessee''s own case in I. T. R. No. 20 of 1978, Commissioner of Income Tax Vs. Hico Products (P.) Ltd., by the judgment dated November 17, 1992. Following the same, the question is answered accordingly in favour of the assessee.

No order as to costs.