9911796707
TMI Blog2002 (7) TMI 73X X X X Extracts X X X X X X X X Extracts X X X X ..... hin the meaning of section 40(c) of the Income-tax Act, 1961?" - the question of law is answered against the Revenue and in favour of the assessee. - - - - - Dated:- 9-7-2002 - Judge(s) : V. S. SIRPURKAR., N. V. BALASUBRAMANIAN. JUDGMENT The judgment of the court was delivered by N.V. BALASUBRAMANIAN J.-The question referred to us under section 256(1) of the Income-tax Act, 1961, at the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... irmed by the Income-tax Appellate Tribunal. It is against this order the present reference is being made at the instance of the Revenue. Learned counsel appearing for both the parties have fairly submitted that the reference for the earlier year 1982-83 came for consideration before this court and this court has held that the payment of royalty was paid to the directors not in the capacity of d ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the payments were made as a device or as a screen to cover the payments by way of remuneration. We, therefore, hold that the Tribunal was right in holding that the royalty paid to the directors is not to be taken into account for the purpose of section 40(c) of the Act. Therefore, the question of law is answered against the Revenue and in favour of the assessee. However, in the circumstances, t ..... X X X X Extracts X X X X X X X X Extracts X X X X
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