9911796707
TMI Blog2003 (4) TMI 27X X X X Extracts X X X X X X X X Extracts X X X X ..... erquisite - - - - - Dated:- 17-4-2003 - Judge(s) : S. H. KAPADIA., J. P. DEVADHAR. JUDGMENT The judgment of the court was delivered by S.H. KAPADIA J.-For the assessment year 1983-84, the Department has come by way of reference under section 256(1) of the Income-tax Act, 1961, for our opinion on the following three questions: "(1) Whether, on the facts and in the circumstances of the case, the Tribunal was right in law in holding that the expenditure incurred on repairs, maintenance and insurance to the assessee's owned accommodation provided to the employees is not perquisites within the meaning of section 40A(5) of the Income-tax Act? In the case of Citibank N.A. v. CIT--decided on March 5, 2003, vide Income-tax Reference No ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... es in the event of such contingency happening. It was, therefore, submitted that the expenditure incurred by the assessee-company to insure the life of the building was not an expenditure in respect of any assets of the assessee and, therefore section 40A(5)(a)(ii) is not attracted. In support of the above argument, reliance is placed on the judgment of the Bombay High Court in the case of CIT v. Tata Oil Mills Co. Ltd. [1990] 182 ITR 130. It was argued that in the case of repairs and maintenance, there is a value addition to the assets belonging to the assessee. That, by payment of premium for insuring the building, there is no such value addition. That, such payment is only to provide a cover against the risk of fire, theft, accident, etc ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 40A(5)(a)(ii) was not attracted. That judgment has no application to the present case. In the present case, the building in which the employees reside has been insured. The premium paid is an expenditure incurred by the assessee in respect of the building owned by the assessee. The building is the asset of the assessee. Therefore, in our view, the expenditure incurred in insuring the building (asset) is covered by section 40A(5)(a)(ii) of the Act. Accordingly, the entire question No. 1 is answered in the negative, i.e., in favour of the Department and against the assessee. "(2) Whether, on the facts and in the circumstances of the case, the Tribunal was right in law in holding that the perquisites value of the car should be computed as ..... X X X X Extracts X X X X X X X X Extracts X X X X
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