1989 (12) TMI 110

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..... ition of Rs. 16,180 said to have been perquisites in the form of medical expenses reimbursement of Rs. 2,564, leave travel assistance Rs. 3,440, electricity and water charges Rs. 3,577 and provisions for chaffeur driven car Rs. 6,600. The ITO added the perquisites in the remuneration received by the appellant as Managing Director, Hotel Banjara. 3. Before us, Shri M.J. Swamy, learned counsel for .....

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..... nce, club fees, medical bills which are paid directly to the employee do not fall within the meaning of the expression 'perquisites' in sub-s. (5) of s. 40A of the IT Act, 1961 and cannot be taken into account for the purpose of disallowance under the section. Learned counsel raised an alternate argument also that if the income be treated as income from salary, standard deduction as permissible un .....

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..... ector, Hotel Banjara can only be assessed under the head 'income from other sources'. Once this finding is reached, the next question apropos the taxability of perquisites under the head 'income from other sources' is to be decided. Those perquisites or benefits which come under the ambit and purview of s. 17(2) or s. 28(iv) of the IT Act, 1961 could only be included under relevant heads of income .....

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