1998 (6) TMI 41

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..... the instance of the Revenue and the Appellate Tribunal has stated a case and referred the following question of law arising out of the assessment of the income of the assessee for the assessment year 1979-80 under section 256(1) of the Income-tax Act, 1961 (hereinafter to be referred to as "the Act") : "Whether, on the facts and in the circumstances of the case, the Tribunal was right in law in d .....

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..... nue, followed its earlier order for the assessment year 1978-79 and held that the disallowance of remuneration by the Income-tax Officer was not justified and dismissed the appeal preferred by the Revenue. It is this order which is the subject-matter of this tax case reference. Learned counsel for the Revenue fairly submitted before us that the earlier order of the Appellate Tribunal rendered in .....

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..... tion 40(c) of the Act to a payment made to a holding company. It was found that the payments were made on contractual basis and the expenditure was incurred on account of business expediency and the arrangement with the holding company was a bona fide one and was made in the interest of the assessee's business. In view of the finding of the Appellate Tribunal though rendered for the earlier assess .....

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