9911796707
TMI Blog1984 (2) TMI 46X X X X Extracts X X X X X X X X Extracts X X X X ..... nder s. 256(2) of the I.T. Act, 1961 (referred to hereinafter as " the said Act "), for directing the Tribunal to refer to this court for determination of the question set out hereinafter and to make a statement of a case for that purpose. The question sought to be referred is as follows : " Whether, on the facts and in the circumstances of the case, and in law, the Tribunal was right in cancell ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... paid in respect of the personal guarantee given by the said directors to guarantee the repayment of loans taken by the assessee. Thereafter, the ITO issued notice under s. 154 of the said Act and purported to rectify a mistake apparent on the face of the record by adding the amount of the aforesaid 'Commission to the disallowance made by him earlier. The assessee appealed against the said rectific ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ) of the said Act, on the basis of which the rectification appears to have been made, runs as follows : " (c) in the case of any company (i) any expenditure which results directly or indirectly in the provision of any remuneration or benefit or amenity to a director or to a person who has a substantial interest in the company or to a relative of the director or of such person, as the case may ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... fair market value for the services rendered, then there is no limitation on the total amount payable during any period. This decision of the Karnataka High Court has been approved and relied on by a Division Bench of the Punjab and Haryana High Court in CIT v. Avon Cycles (P.) Ltd. [1980] 126 ITR 448. In view of these decisions, the Tribunal was right in its view that the question as to whether ..... X X X X Extracts X X X X X X X X Extracts X X X X
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