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. 634 OF 1998 TAX REFERENCE NO. 634 OF 1998 TAX REFERENCE NO. 634 OF 1998 The Commissioner of Income-tax. ... Applicant. V/s. M/s.Rajni Pravin Chemicalc P.Ltd. ... Respondent. A.S.Rao for the Applicant. CORAM CORAM CORAM : V.C.DAGA AND J.P.DEVADHAR, JJ. : V.C.DAGA AND J.P.DEVADHAR, JJ. : V.C.DAGA AND J.P.DEVADHAR, JJ. DATED DATED DATED : 29th March, 2005. : 29th March, 2005. : 29th March, 2005. P.C. P.C. P.C. : : : ---- ---- ---- . Heard learned counsel for the applicant. The tribunal has referred following question for the opinion of this Court: "Whether on the facts and in the circumstances of the case, the Tribunal was right in law in holding that for disallowances of payments to employee- directors provisions of Section 40(c) of the Income-tax Act, 1961, should be applied and not the provisions of Section 40A(5) of the Act?" 2. The above question has already been answered by the Division Bench of this Court in the case of C.I.T. C.I.T. C.I.T. v. Hico Products P.Ltd. v. Hico Products P.Ltd. v. Hico Products P.Ltd., (1993) 201 ITR 567 (Bom) in favour of assessee and against the the revenue. In this view of the matter, the question referred is answered in affirmative for the reasons stated in the above referred judgment. . Reference stands disposed of accordingly with no order as to costs. *****