1994 (11) TMI 2 - HC - Income Tax

Additional Grounds Any Remuneration Business Expenditure Fluctuation In Rate Foreign Exchange Power To Admit Additional Ground Powers Of Tribunal

Summary

The High Court of Bombay addressed three questions referred by the Tribunal:

1. Tribunal was not justified in refusing to admit additional ground on remuneration to directors under section 37 vs. section 40(c).
2. Tribunal was justified in including commission in 'remuneration' under section 40(c).
3. Assessee not eligible for investment allowance under section 32A for additional cost of imported assets due to exchange rate fluctuation.

First question answered in favor of assessee, second in favor of Revenue, and third in favor of Revenue.