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TMI Blog2015 (2) TMI 760X X X X Extracts X X X X X X X X Extracts X X X X ..... tion. - Decided against assessee. Subscription paid directly in the form of cash - treatment as a perquisite in view of Section 40-A (5)(a) (ii) - Held that:- A due consideration of the facts reveals that subscription has been made to professional institutions and clubs. The subscription, therefore, cannot be treated as a perquisite under Section 40(A) (5a) of the Act. Reliance may be placed upon a judgment of the Delhi High Court in Commissioner of Income Tax Vs. Shriram Refrigeration Industries Ltd. (1992 (5) TMI 15 - DELHI High Court). - Decided against revenue. Extra shift allowance - ITAT allowing allowance on the basis of the concern as a whole working as an extra shift - Held that:- ITAT has relied upon a circular issued by Cen ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ed a reference seeking answer to the following questions:- 1. Whether on the facts and in the circumstances of the case, the ITAT was right in law in upholding the order of the CIT(A) deleting addition of ₹ 3600/- made by the Assessing Officer in view of Section 37(4) read with Section 37(5) in respect of rent paid by the assessee to P.S.I.D.C. for guest house? 2. Whether on the facts and in the circumstances of the case, the ITAT was right in law in holding that the subscription paid to the employee Directors in the form of cash payment could not be treated as perquisite because the very language of Section 40(A) (5) a) (ii) refers to perquisites whether convertible into money or not? 3. Whether on the facts and in the circ ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... y been answered in favour of the revenue in United Catalysts India Ltd. Vs. Commissioner of Income Tax, (1998) 229 ITR 233 and Commissioner of Income Tax Vs. Upper Ganges Sugar Mills Ltd., (1994) 206 ITR 215. Counsel for the assessee, however, submits that as expenditure on rent including expenditure incurred in hiring a guest house falls within Section 30 of the Act, the Income Tax Appellate Tribunal has rightly deleted this addition. Sections 30, 37(4) (5) of the Act read as follows:- 30. In respect of rent, rates, taxes, repairs and insurance for premises, used for the purposes of the business or profession, the following deductions shall be allowed- (a) where the premises are occupied by the assessee- (i) as a tenant, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... any other office in, the company), on tour or visit to the place at which such accommodation is situated, is accommodation in the nature of a guest-house within the meaning of sub-section(4). Section 30 of the Act allows deduction of expenditure incurred on rent, rates, taxes, repair of premises used for the purpose of business or profession. The use of the word 'profession' in Section 30 of the Act may appear to suggest that guest house expenses can be allowed as a deduction. However, a perusal of Section 37(4) of the Act, which commences with a non-obstantive clause reveals that no allowance shall be made in respect of any expenditure incurred by the assessee, after the 28th day of February, 1970, on the maintenance of any res ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... in Commissioner of Income Tax Vs. Shriram Refrigeration Industries Ltd., (1993) 110 CTR (Del) 60 and a judgment of the Madras High Court in Commissioner of Income Tax Vs. Madras Rubber Factory Ltd., (1996) 131 CTR (Mad) 222, to contend that cash payment made on behalf of an employee is not a perquisite and therefore, cannot be disallowed under Section 40-A (5) (ii) of the Act. A due consideration of the facts reveals that subscription has been made to professional institutions and clubs. The subscription, therefore, cannot be treated as a perquisite under Section 40(A) (5a) of the Act. Reliance may be placed upon a judgment of the Delhi High Court in Commissioner of Income Tax Vs. Shriram Refrigeration Industries Ltd. (supra). The second ..... X X X X Extracts X X X X X X X X Extracts X X X X
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