Cit vs Kapur Minning Equipment (P.) Ltd.
2007 Latest Caselaw 1336 Del

Citation : 2007 Latest Caselaw 1336 Del
Judgement Date : 20 July, 2007

Delhi High Court

Cit vs Kapur Minning Equipment (P.) Ltd. on 20 July, 2007

Bench: M B Lokur, V Gupta

ORDER

1. The following question of law has been referred for our opinion under Section 256(1) of the Income Tax Act, 1961:

Whether on the facts and in the circumstances of the case, the Income Tax Appellate Tribunal is right in law in holding that provisions of Section 40(c) are applicable to salary paid to Directors of the company instead of Section 40A(5) of the Income Tax Act, 1961?

2. In view of the decision of Supreme Court in CIT v. Indian Engg. & Commercial Corpn. (P.) Ltd. ', the assessed is entitled to the benefit of higher of the two amounts as mentioned in Section 40(c) and Section 40A(5) of the Income Tax Act, 1961.

3. The reference is disposed of accordingly.

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