9911796707
TMI Blog1999 (10) TMI 23X X X X Extracts X X X X X X X X Extracts X X X X ..... ported car with chauffeur provided to the assessee by J. K. Cotton Spinning and Weaving Mills Limited in which he was a director should be the same as in the case of an employee of the company ?" The aforesaid question arises out of the Tribunal's orders dated January 17, 1981, and June 26, 1981, passed in ITA Nos. 1091 and 1919 of 1980 for the assessment years 1976-77 and 1977-78, respectively. We have heard Sri Shambhu Chopra, learned counsel for the Commissioner, and Sri V. K. Uppadhya, learned counsel for the respondent. The facts are that the assessee, the late Sir Padampat Singhania, was the chairman of the board of directors of J. K. Cotton Spinning and Weaving Mills Ltd., Kanpur. The said company provided him free use of an im ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... f the persons whose income is chargeable under the head "Salaries". It was, thus, contended on behalf of the Commissioner that the said rule applies only to an employee even though such an employee may be a director of the company. Since the assessee was not an employee, rule 3 could not be invoked. The relevant part of rule 3 dealing with the valuation of the perquisite value of a vehicle is as under : "(c)(i) The value of a motor-car provided by the employer for use by the assessee exclusively for his private or personal purposes shall be determined as the sum actually expended by the employer on the maintenance and running of the motor-car during the relevant previous year (including remuneration, if any, paid by the employer to the ch ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ------------------------------------------------------------- Where the h.p. rating Where the h.p. rating of the car does not of the car exceeds16 exceed 16 or the cubic or the cubic capacity, capacity of the engine of the engine exceeds does not exceed 1.88 1.88 litres litres. ---------------------------------------------------------------------------------------- Rs. Rs. ---------------------------------------------------------------------------------------------------------------------------------------------------- (1) Where the motor-car is owned or hired by the employer and all the expenses on maintenance and running are met or reimbursed to the assesses by the employer 300 400 (2) Where the motor-car is owned or hired b ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... He has also not mentioned whether the car was exclusively for personal use of the assessee or for use for the purposes of the company as a managing director as also for his private use. So much so that the Assessing Officer did not even gather information about the type of the car and he has used a vague reference as imported car. It was, thus, a case where a determination on the basis mentioned in rule 3(c)(i) and (ii) presented a difficulty for want of the basic details that the Tribunal seems to have accepted the value at Rs. 6,600 which seems to have been determined by applying the formula contained in the Table, reproduced above. There being no other method that could be applied, in the facts of the case the Tribunal's acceptance of t ..... X X X X Extracts X X X X X X X X Extracts X X X X
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