1999 (2) TMI 14 - SC - Income Tax

Whether the Tribunal is right in deleting the addition u/s 40A (5), 1961, in respect of premium paid for the purchase of deferred annuity policies in respect of two managing directors - Whether the Tribunal is right in distinguishing the decision of the Gujarat Steel Tubes Ltd. s case - question of law arises out of order of Tribunal and their consideration by the High Court is requisite

Summary

The Supreme Court allowed the appeals related to the addition under section 40A(5) of the Income-tax Act for premium paid for deferred annuity policies. The Court directed the Tribunal to refer the questions to the High Court for consideration. The decision in L. W. Russel's case concluded the matter for the employee, but questions of law arose for the employer. The Gujarat High Court's decision favored the Revenue.