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TMI Blog1988 (10) TMI 74X X X X Extracts X X X X X X X X Extracts X X X X ..... ., 1982to31st March, 1982. 4. The first dispute raised in these appeals is about the grant of a standard deduction under s. 16(1) of the IT Act, 1961. According to the ITO, both these assessees were provided a car perquisite by the employer and therefore, the deduction was not to exceed Rs. 1,000 in terms of the proviso to s. 16. The ITO further reduced the amount of deduction admissible under s. 16(1) pro rata according to the period for which these assessees were in employment. He appears to have taken the view that the standard deduction admissible under s. 16(1) is for the whole year and, therefore, where an assessee is in employment for a smaller period, the standard deduction has to be also proportionately reduced. The ITO's action o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... material to accept the learned counsel's contention that the employer did not provide the car to these employees for their personal use. The car having been provided for purposes otherwise than wholly and exclusively in the performance of their duties, the standard deduction was to be restricted to Rs. 1,000. 6. However, as regards the action of the authorities below in further restricting the standard deduction in proportion to the period of stay, we find that it is wholly unjustified and in bad taste. Under s. 16, the standard deduction has to be allowed as a percentage of the salary. For the relevant year the deduction was allowable in a sum equal to to 20 per cent of the salary or Rs. 3,500, whichever is less. The period for which an e ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of 24 months commencing from the date of his arrival in India in so far as such remuneration does not exceed an amount calculated @ Rs. 4,000 p.m." The learned counsel for the assessee contended that month means a calendar month and, therefore, when Bateman came to India on 30th Jan., 1982, he should be deemed to have completed one month of service on 31st Jan., 1982 and thus he was entitled to exemption equal to three months' salary @ Rs. 4,000 p.m. SimilarlyAndersonhaving arrived inIndia, on11th Feb., 1982and thus he was entitled to full two months benefit under this section. Reliance was placed on the analogy of s. 80J under which relief is admissible for five assessment years. The learned counsel for the assessee referred to CIT vs. Mys ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... te of his arrival inIndiaand the period would end at the expiry of 24 months from the date of arrival. 8. Month has been defined in s. 3(35) of the General Clauses Act to mean "a month reckoned according to the British calendar." When a certain period begins from the first day of a British calendar month, for example, the first of January, there may be no difficult, but when a period commences from a date which is not the first day of the month, the period has to be calculated as follows as described in Halsbury's Lasws of England; "When the period prescribed is a calendar month running from any arbitrary date the period expires with the day in the succeeding month immediately preceding the day corresponding to the date upon which the per ..... X X X X Extracts X X X X X X X X Extracts X X X X
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