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TMI Blog2001 (3) TMI 73X X X X Extracts X X X X X X X X Extracts X X X X ..... Whether, on the facts and in the circumstances of the case, the Tribunal was right in holding that the applicant was not a company in which the public are substantially interested within the meaning of the Finance Act, 1976? (3) Whether, on the facts and in the circumstances of the case, the Tribunal was right in holding that the commission payments made to a director are to be treated as remuneration for the purposes of computing the disallowance under section 40(c) of the Income-tax Act, 1961 ?" In view of the judgment of the Supreme Court in the case of Smith Kline and French (India) Ltd. v. CIT [1996] 219 ITR 58 1, question No. 1 is answered in the affirmative, i.e., in favour of the Revenue and against the assessee. In view of the j ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... per and Allied Industries Pvt. Ltd. and Nav Ketan International Films Pvt. Ltd. Accordingly, the Tribunal dismissed the appeal preferred by the assessee. Being aggrieved, the matter has come to this court under section 256(1) of the Income-tax Act for our opinion. Findings on question No. 3 : At the outset, it may be mentioned that the decision of the Tribunal in Pai Paper and Allied Industries Pvt. Ltd. and Nav Ketan International Films Pvt. Ltd. came to be reversed by the judgments of the Bombay High Court in the case of Pai Paper and Allied Industries Pvt. Ltd. v. CIT [1994] 207 ITR 410 and in the case of Nav Ketan International Films Pvt. Ltd. v. CIT [1994] 209 ITR 976. In the aforestated two judgments, this court has ruled that secti ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ctor is paid remuneration or where any expenditure is incurred to provide benefits to him in his position as a director. Since the expenditure was incurred to provide him with benefits in his position as an actor and as a writer, section 40(c) was held to be not applicable. The ratio of the judgment of this court in Pai Paper and Allied Industries Pvt. Ltd. [1994] 207 ITR 410, is also to the same effect. In view of the aforestated two judgments of the Bombay High Court in the cases of Pai Paper and Allied Industries Pvt. Ltd. [1994] 207 ITR 410 and Nav Ketan International Films Pvt. Ltd. [1994] 209 ITR 976, there is no dispute regarding the legal position. However, in the present case, it is not clear from the decision of the Tribunal as to ..... X X X X Extracts X X X X X X X X Extracts X X X X
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