1998 (6) TMI 41 - HC - Income Tax

Summary

The High Court of Madras ruled in a tax case reference that the disallowance of managerial remuneration paid by the assessee to its holding company was unjustified. The court held that the payment to the holding company was allowable under section 37 of the Income-tax Act and could not be disallowed under section 40(c) of the Act. The judgment was in favor of the assessee, who was awarded costs of Rs. 750.