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TMI Blog1966 (1) TMI 6X X X X Extracts X X X X X X X X Extracts X X X X ..... , which were not convertible into money, did not constitute "income" chargeable u/s 12 - - - - - Dated:- 6-1-1966 - Judge(s) : H. MAHAPATRA., S. N. P. SINGH JUDGMENT These two references, under section 66(1) of the Indian Income-tax Act, at the instance of the Commissioner of Income-tax, Bihar and Orissa, relate to the assessment years 1951-52 and 1952-53. The corresponding accounting y ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e of the assessee. On appeal by the assessee, the Appellate Assistant Commissioner held that the value of such benefits which are not convertible into money cannot be brought to tax as income in the hands of the assessee. The same view was taken in appeal by the department before the Tribunal. There was an amendment, and section 2(6C) of the Act was recast in 1955 (see section 3 of the Finance A ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... stood before the amendment in 1955, those benefits not convertible into money could be taken as " constructive income " as stated by the Income-tax Officer, and be assessed to tax. The answer to this question is bound to be in the negative, because the definition of " income ", as given in the Act, at the relevant time could not include such benefits. In our view, the opinion expressed by the Trib ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... That (benefit) was also convertible into money. But, in the instant case, the assessee could not have enforced the alleged benefits against the company. Rather, the company could withdraw them at its option, at any time, if it liked. They were not convertible into money; the question framed is on that assumption. Until the value of the benefits and perquisites was brought within the definition of ..... X X X X Extracts X X X X X X X X Extracts X X X X
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