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2004 (2) TMI 12 - HC - Income Tax"Whether, Tribunal is correct in law in holding that the provisions of section 40(c) and not section 40A(5) are applicable to the director employees and on that ground deleting the disallowance of perquisites provided by the assessee-company to its directors in excess of the limits permitted in section 40A(5)?" – Held that "The employees concerned herein also happen to be directors. The provision in clause (c) of section 40 applies to directors among others. Of course, section 40(c) is applicable only to companies whereas section 40A(5) is applicable to employees whether of companies or others. In the case of directors who are also employees, both the provisions will be attracted-the higher of the two ceilings has to be applied." - Accordingly, the references are disposed of in favour of the assessee
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