IN IN IN THE HIGH COURT OF JUDICATURE AT BOMBAY THE HIGH COURT OF JUDICATURE AT BOMBAY THE HIGH COURT OF JUDICATURE AT BOMBAY ORDINARY ORDINARY ORDINARY ORIGINAL CIVIL JURISDICTION ORIGINAL CIVIL JURISDICTION ORIGINAL CIVIL JURISDICTION INCOME INCOME INCOME TAX REFERENCE NO. 794 OF 1998. TAX REFERENCE NO. 794 OF 1998. TAX REFERENCE NO. 794 OF 1998. The Commissioner of Income-tax, Bombay City-II, Bombay. ... Applicant. V/s. M/s Hindustan Sugar Mills Ltd. ... Respondent. Shri A.N. Kotangale with D.A. Dubey i/b K.C.Sidhwa for the applicant. Ms.V.B. Patel for the respondent. CORAM CORAM CORAM : V.C.DAGA AND A.S.AGUIAR, JJ. : V.C.DAGA AND A.S.AGUIAR, JJ. : V.C.DAGA AND A.S.AGUIAR, JJ. DATED DATED DATED : 25.7.2005 : 25.7.2005 : 25.7.2005 P.C. P.C. P.C. : : : ---- ---- ---- . By this reference under section 256 of the Income-tax Act, 1961, the Income Tax Appellate Tribunal has referred the following question of law for the opinion of this Court: 1. Whether, on the facts and in the circumstances of the case, the Tribunal was justified in holding that the limits u/s 40(c) and not those u/s 40A(5) apply in the case of expenditure on payment of salary, provisions of perquisites and allowance in respect of assets used for his own benefit by director-employee of the company? . Learned Counsel for the parties agreed that the above question is answered by the judgment of this Court in the case of C.I.T. vs.Hico Products C.I.T. vs.Hico Products C.I.T. vs.Hico Products Pvt.Ltd. Pvt.Ltd. Pvt.Ltd. (1993) 201 ITR 567 (Bom.) (1993) 201 ITR 567 (Bom.) (1993) 201 ITR 567 (Bom.) in favour of the assessee. In this view of the matter, the reference is answered in the affirmative i.e. in favour of the assessee and against the revenue. . Reference stands disposed of with no order as to costs. (A.S.AGUIAR, (A.S.AGUIAR, (A.S.AGUIAR, J.) J.) J.) (V.C.DAGA, (V.C.DAGA, (V.C.DAGA, J.) J.) J.)