AGK AGK AGK 1 IN THE HIGH COURT OF JUDICATURE AT BOMBAY ORDINARY ORIGINAL CIVIL JURISDICTION INCOME TAX REFERENCE NO.532 OF 1998 The Commissioner of Income-tax, Bombay City - V, Bombay .. Applicant. V/s. M/s.Fit Tights Nuts & Bolts Ltd... Respondent. Mr.A.S. Rao for the applicant. Mr.U.S. Patole, Asstt. Official Liquidator present. CORAM : V.C. DAGA & CORAM : V.C. DAGA & CORAM : V.C. DAGA & J.P. DEVADHAR, JJ. J.P. DEVADHAR, JJ. J.P. DEVADHAR, JJ. DATED : 11TH OCTOBER, 2005. DATED : 11TH OCTOBER, 2005. DATED : 11TH OCTOBER, 2005. P.C. : 1. Heard the learned counsel for the applicant. The Tribunal has referred the question for the opinion of this Court reading as under :- Whether in the facts and in the circumstances of the case, the Tribunal was right in law in holding that in computing the disallowance in respect of expenditure incurred on payment of salary & perquisites to Directors, the provisions of section 40(c) and not those of section 40A(5) will apply ? 2. The above question has already been answered by the Division Bench of this Court in the case of CIT V/s. Hico Products Pvt.Ltd. (No.1) [(1993) 201 CIT V/s. Hico Products Pvt.Ltd. (No.1) [(1993) 201 CIT V/s. Hico Products Pvt.Ltd. (No.1) [(1993) 201 I.T.R. 567 (Bom)] I.T.R. 567 (Bom)] I.T.R. 567 (Bom)] in favour of the assessee and against the revenue. In this view of the matter, question stands answered in affirmative for the reasons stated in the case of Hico Products (P) Ltd. Reference, accordingly stands disposed of with no order as to costs. AGK AGK AGK 2 *********