FACIT ASIA LTD Vs. DEPUTY COMMISSIONER OF INCOME TAX
LAWS(IT)-1993-6-22
INCOME TAX APPELLATE TRIBUNAL
Decided on June 14,1993

Appellant
VERSUS
Respondents

JUDGEMENT

S. Kannan, Accountant Member - (1.) THIS appeal by the assessee is directed against the order dated 16-6-1988 of the CIT(A)-VI, Madras relating to the assessment year 1985-86.
(2.) Issue No. 1 - Disallowance out of travelling allowance (Rule 6D) The assessee's grievance is that by not following the decision of the I.T.A.T. Bombay Bench in S.V. Ghataliav. Second ITO [1983] 4ITD 583, the CIT(A) had sustained an excess disallowance of Rs. 15,008 under the head Travelling expenses'. On hearing the rival submissions, we consider that the assessee's objection is valid. We, therefore, direct the Assessing Officer to recompute the sum to be disallowed under Rule 6D by following the aforesaid case.
(3.) ISSUE No. 2- Disallowance of medical expenses reimbursed to employees/ directors under Section 40(c) and 40A(5) Here the assessee's contention is that the medical expenses reimbursed by the assessee to its employees/directors ought not to have been taken as part of salary of the employees/directors for the purpose of computing the disallowance under the said sections.;


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