JUDGMENT

R. JAYASIMHA BABU, J.-----The following two questions have been referred to us at the instance of the Revenue."(1) Whether, on the facts and in the circumstances of the case, the Appellate Tribunal was right in holding that the provision o section 40A(5)(b) would be applicable while making the disallowance under section 40(c) in respect of the Director foreign technician of the assessee-company and the example remuneration of the foreign technicians under section 10(6)(viia) of the Income-tax Act should not be taken for computing the quantum of remuneration on which the limit of Rs.72,000 is to be applied?(2) Whether, on the facts and in the circumstances of the case, the liability to pay the liquidated damages for breach of contract was an accrued liability and properly taken into account in computing the income of the assessee?"At the instance of the assessee, the following question has beer referred to us:"Whether, the Tribunal was right in law in holding that the assessee is not en...