2001 (2) TMI 98

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..... lowing question has been referred for the opinion of this court under section 256(1) of the Income-tax Act, 1961 (in short, "the Act"), by the Income-tax Appellate Tribunal, Delhi Bench "B" (in short, "the Tribunal"). "Whether, the Income-tax Appellate Tribunal was correct in law and on facts in holding that payment of sitting fee to directors could not be considered in computing disallowance und .....

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..... f directors' meeting and it cannot be termed to be remuneration. The Tribunal accepted the stand and directed deletion. The Tribunal found that section 40(c) has no application as it was applicable to payment of remuneration and amenities to the directors. Sitting fees, according to the Tribunal, cannot be said to belong to the aforesaid category and it was in the nature of daily allowance. On bei .....

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..... stries Ltd. v. CIT [1994] 205 ITR 200 that remuneration includes money paid to a person for his services or work. In The Queen v. Postmaster General [1876] 1 QBD 658, it was held that remuneration is a wider term and means a quid pro quo. If a man gives his services, whatever consideration he gets for giving his services seems to me a remuneration for them. Remuneration, in our opinion, would incl .....

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