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TMI Blog1986 (12) TMI 100X X X X Extracts X X X X X X X X Extracts X X X X ..... 4,320 Leave travel 2,640 The IAC had disallowed only Rs. 15,300 under s. 40A (5) of the IT Act. Thus the claim of the assessee at Rs. 1,76,229 was allowed. The Commissioner was of the opinion that all payments in the form of benefits, amenities such as reimbursement of medical expenses, provision of electricity, water, gas at the residence of the employee, payment of club bills of employee, provision of domestic servants, gardeners etc., would be part of perquisites under s. 40A (5)(a) (ii). Therefore, only 1/5th of the expenditure or an amount calculated at Rs. 1000 p.m., could be allowed. Accordingly, he was of the opinion that medical reimbursement expenses amounting to Rs. 1,09,269 were far in excess of th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d down by the Ministry of Industrial Development, should not be allowed in terms of s. 119(1). The assessing authority was bound to observe and follow such instructions. Therefore, the IAC's decision in not following the Boards instructions was certainly erroneous within the meaning of s. 263 of the IT Act. He, therefore, modified the assessment order of the IAC in regard to the allowing of the expenditure of Rs. 1,09,269 and held that the claim would be admissible within the limits laid down in s. 40A (5) (a) (ii) directed the IAC to revised the total income of the assessee accordingly and required the assessee to pay the additional demand. The assessee has come up in second appeal before us. 2. We have heard the representative of the pa ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... dgments is fully binding upon us. Even otherwise it is a matter of common knowledge that the appellate authorities deal with only such matters as are agitated or are the subject matter of dispute before them and ordinary they never look into those parts of assessment which are not disputed before them. The assessing authority could not dispute his own assessment before the appellate authority and therefore the principle of merger should not be ordinarily applied to matter which were not subject matter of dispute in appeal. The contention of the assessee is, therefore rejected. 3. In support of the proposition that case reimbursement of medical expenses is not perquisite. A number of authorities, such as CIT vs. Indokem Pvt. Ltd. (1981) 22 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of reimbursement of medical expenses cannot be treated as perquisites, none of them has held that it cannot be treated as part of the salary so as to enable the assessee to ignore the all over limit of Rs. 70,000 applicable in those days. 4. At the time of arguments, it was also contended on behalf of the assessee that there was some circulation according to which reimbursement of medical expenses was not to be disallowed for any reason whatsoever. However, no such circular was brought to our notice either at the time of hearing of the appeal or even later. We are, therefore, of the opinion that there is no force in this appeal, which is hereby dismissed. A. Kalyanasundharam, A.M. I concur with the conclusion arrived at by my ld. bro ..... X X X X Extracts X X X X X X X X Extracts X X X X
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