Ordinary Original Civil Jurisdicgtion Income Tax Reference v. M/S. Montreal Engineering (Eastern) Ltd

IN THE HIGH COURT OF JUDICATURE AT BOMBAY ORDINARY ORIGINAL CIVIL JURISDICGTION INCOME TAX REFERENCE NO. 207 of 1995 The Commissioner of Income Tax ... Applicant. vs. M/s. Montreal Engineering (Eastern) Ltd. ..... Respondent Mr. Parag Vyas i/b. H. D. Rathod for Applicant. CORAM: V. C. DAGAAND A. S. AGUIAR JJ. Date: 10[th] August, 2005. P. C. : 1. By this reference, arising out of I.T.A. No. 5059/Bom/87, forAssessment Year 19741-75, under section 256(1) of the Income-taxAct the Tribunal has referred the following question of law for opinionat the instance of the Revenue: (1) Whether on the facts and in the circumstances of thecase and in law, the Tribunal was right in law in holdingthat the assessing officer was not justified indisallowing a sum of Rs.1,15,810/- out of remunerationof Rs.1,63,810/- paid to Mr. Skinner, an employee –director of the assessee – company, under theprovisions of sec. 40(c) of the Income Tax Act , 1961. 2. Both counsel appearing for the rival parties agree that the abovequestions have been covered by decision of the Apex Court in the case of Commissioner of Income Tax vs. Hico Products Pvt. Ltd.[1993] 201 ITR page 567 (Bom.), In this view of the matter boththe questions referred to us is answered in the affirmative i.e. infavour of the assessee and against the Revenue. Referenceaccordingly disposed of with no order as to costs. (V. C. DAGA J. ) -x- (A. S. AGUIAR J.)