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Additional Commissioner Of Income-Tax vs Late A.K. Lakshmi And Ors. (By Lr) on 24 October, 1977 cites

Commissioner Of Income-Tax vs C. Kulandaivelu Konar (Decd.) By L. Rs. on 8 January, 1975

10. Counsel for the department contended that getting the benefit of the use of fairly large sums of money belonging to the company by the directors without any obligation to pay interest would be a benefit granted by the company to the directors who are admittedly employees of the company. There is a direct ruling on this point of this court, namely, Commissioner of Income-tax v. C. Kulandaivelu Konar , which, on very similar facts, if not identical, took the view that such use of the monies of the company would amount to a benefit granted by the company without cost and would attract Section 17(2)(iii) of the Act. Learned counsel for the assessee contended that it was open to the company to decide whether it should lend monies by charging interest or without charging interest. He emphasised that this was not a case in which monies had been given away by the company and pointed out that the assessees and/or their estates were liable to return the amounts made available to them by the company, to the company and, therefore, by receipt of the monies as such there was no benefit that had accrued to the assessee. In such circumstances, he said, it will not be proper to urge that a borrower had derived any benefit by the borrowing and the resulting or consequential availability of the monies for his own use.
Madras High Court Cites 14 - Cited by 30 - V Ramaswami - Full Document
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