1988 (12) TMI 69

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..... 1, for directing the Tribunal to state case and refer the following questions to this court for its opinion : " 1. Whether, on the facts and in the circumstances of the case, the Income-tax Appellate Tribunal was correct both on facts and in law in upholding the order of the Commissioner of Income-tax (Appeals) reducing the disallowance of Rs. 1,20,000 representing salary to the managing director .....

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..... appearing for the petitioner is that the appointment of Shri Dev Raj Narang, managing director, though it was approved by the Company Law Board, the approval was conditional. The condition was not fulfilled and, therefore, in law, there was no approval. The Company Law Board approved the appointment of Shri Dev Raj Narang as the managing director of the respondent-company for a period of five yea .....

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..... e said company after the grant of the approval. The condition barred acquiring any interest in any selling agency of the respondent-company in the future. The wording of the condition is very clear. There is no scope for any other interpretation and, in our view, there is no justification for calling for a reference so far as this question is concerned. As regards question No. 2, learned counsel .....

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..... expenditure shall not be allowed as a deduction". In this case, it appears that certain payments were made to some persons on a particular day. According to the entries, each payment was of less than 2,500 rupees but the total amount exceeded 2,500 rupees. The question is whether, in the circumstances, the provisions of section 40A(3) were attracted ? This, in our view, is an important question o .....

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..... Supreme Court against the order of the Orissa High Court was dismissed by the Supreme Court but the fact remains that it was dismissed in limine. In our considered view, this question is an important question of law and requires consideration. We, consequently, direct the Tribunal to state the case and refer question No. 3 to this court for its opinion.    
Case laws, Decisions, J .....

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