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2013 (12) TMI 1208 - HC - Income TaxPerquisites to director - Held that:- Following Commissioner of Income Tax v. HICO Products Pvt. Ltd. [1992 (11) TMI 58 - BOMBAY High Court] - In the case of employee director and such other persons, who are covered by the proviso to Clause (a) the aggregate ceiling of Rs.72000/- was fixed not only in respect of expenditure referred to in sub-clause (i) and sub-clause (ii) but also those referred to in sub-clause (i) and (ii) of clause (c) of Section 40 (5) of the Act - The legislative intention was to treat the employee directors and other persons mentioned in the proviso differently from other employees in the matter of allowability of expenditure incurred on them - The expenditure incurred by the director were within the ceiling. Whether proposed dividend is an ascertained liability - Held that:- Following CIT v. Enfield India Ltd [1996 (10) TMI 14 - MADRAS High Court] - The dividend was only proposed and was not yet approved by the General Body of the shareholders at the annual general meeting - It could not be said to be liability on the first day of the computation period under sub-section (1) of Section 80J - Decided in favour of assessee.
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