Bombay High Court
Commissioner Of Income-Tax vs Mansants Chemicals (P.) Ltd. on 22 November, 1988
Equivalent citations: [1989]177ITR204(BOM)
Author: S.P. Bharucha
Bench: S.P. Bharucha
JUDGMENT T.D. Sugla, J.
1. The only question of law raised in this reference at the instance of the Revenue is:
"Whether, on the facts and in the circumstances of the case, the cash payments by the assessee to its employees towards house rent allowance in accordance with the service agreement would fall within the purview of the expression 'perquisite' contained in section 40(a)(v) of the Income-tax Act, 1961 ?"
2. Counsel are agreed that in view of this court's decision in the case of CIT v. Indokem Pvt. Ltd. [1981] 132 ITR 125, which was followed in the case of CIT v. Mercantile Banks Ltd. [1988] 169 ITR 44 (Bom), the question is required to be answered in the negative and in favour of the assessee.
3. The question is accordingly so answered. No order as to costs.