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TMI Blog2003 (11) TMI 35X X X X Extracts X X X X X X X X Extracts X X X X ..... ssessee having received a benefit from the company which had no obligation to provide such a benefit to her but had done so gratuitously, the value of the benefit so received by the assessee is required to be treated as part of her income. – Thus, question referred to us is, answered in favour of the Revenue and against the assessee. - - - - - Dated:- 19-11-2003 - Judge(s) : R. JAYASIMHA BABU., ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... /s. Kothari Industrial Corporation Ltd. cannot be treated as perquisite in the hands of assessee?" The assessee had accompanied her husband, Mr. P.V. Kothari, who was the managing director of the company when he went to Europe and the U.S.A. between April 27, 1984, and June 7,1984. The expenditure incurred on her travel was paid by the company, Kothari Industrial Corporation Ltd. of which her hu ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... lea that it was customary in corporate circles for directors and senior executives to take their spouses along with them when they undertake foreign travel. There was no proof of such custom produced before the Tribunal. As had been observed by the Commissioner, there is no material to show that the business affairs of the company were in any way served by the assessee accompanying her husband who ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... iency. The situation here is similar. The assessee received a gratuitous payment from the company of which her husband was the managing director. The benefit so received, therefore, falls within the scope of section 2(24)(iv) of the Income-tax Act, which reads as under: "the value of any benefit or perquisite, whether convertible into money or not, obtained from a company either by a director ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e Revenue had accepted the order of the Tribunal which had allowed this amount as a deduction in the assessment of the company. That however does not result in the Revenue being prevented from assessing that amount as income in the hands of the assessee, the Revenue not having realised any tax on that amount from the company. The questions referred to us are, therefore, answered in favour of the ..... X X X X Extracts X X X X X X X X Extracts X X X X
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