1999 (3) TMI 16 - SCH - Income Tax

Whether on the facts and in the circumstances of the case the Income-tax Appellate Tribunal is correct in law in holding that the premium paid by the assessee on behalf of the employee-director formed part of salary and allowable as deduction from computing the assessable income of the company and not perquisite disallowable under section 40A (5) or 40(c) - question of law does arise which should be considered by the High Court.

Summary

The Supreme Court allowed the appeals related to assessment years 1979-80 to 1981-82. The question of whether premia paid by the assessee on behalf of an employee-director is part of 'salary' or 'perquisite' was to be referred to the High Court for consideration. The order under appeal was set aside, and the Tribunal was directed to refer the question to the High Court.