1998 (4) TMI 42 - HC - Income Tax

Summary

The High Court of Madras ruled that medical reimbursement and house rent allowance paid to managing directors and executives should be considered as part of remuneration for determining limits under sections 40(c) and 40A(5) of the Income-tax Act. The court referred to previous cases and held that these payments are part of salary and subject to prescribed ceilings. The Appellate Tribunal's decision was deemed incorrect, and the judgment favored the Revenue.