IN THE HIGH COURT OF JUDICATURE AT BOMBAY IN THE HIGH COURT OF JUDICATURE AT BOMBAY IN THE HIGH COURT OF JUDICATURE AT BOMBAY ORDINARY ORDINARY ORDINARY ORIGINAL CIVIL JURISDICTION ORIGINAL CIVIL JURISDICTION ORIGINAL CIVIL JURISDICTION INCOME TAX REFERENCE NO.652 OF 1998 INCOME TAX REFERENCE NO.652 OF 1998 INCOME TAX REFERENCE NO.652 OF 1998 The Commissioner of Income-tax ..Applicant. V/s. Hotel Corporation of India Ltd. ..Respondent. Mr.A.S.Rao for applicant. CORAM : V.C. DAGA AND CORAM : V.C. DAGA AND CORAM : V.C. DAGA AND J.P.DEVADHAR, JJ. J.P.DEVADHAR, JJ. J.P.DEVADHAR, JJ. DATED : 4th April, 2005. DATED : 4th April, 2005. DATED : 4th April, 2005. P.C. :- P.C. :- 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 on the facts and in the circumstances of the case, the Tribunal was right in law in holding that the disallowances out of remuneration paid or perquisites provided to employee directors should be computed under the provisions of sec.40(c) of the I.T. Act, 1961 and not under the provisions of sec.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/s. Hico Products Pvt.Ltd. (No.1) [(1993) 201 I.T.R. V/s. Hico Products Pvt.Ltd. (No.1) [(1993) 201 I.T.R. V/s. Hico Products Pvt.Ltd. (No.1) [(1993) 201 I.T.R. 567 (Bom.) 567 (Bom.) 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. (V.C. DAGA, J.) (V.C. DAGA, J.) (V.C. DAGA, J.) (J.P.DEVADHAR, J.) (J.P.DEVADHAR, J.) (J.P.DEVADHAR, J.)