9911796707
TMI Blog2000 (6) TMI 25X X X X Extracts X X X X X X X X Extracts X X X X ..... issioning of cables. This was during the period April 2, 1987, to June 17, 1987, and also during the period October 8, 1987, to March 31, 1988. During this period in Bombay, he stayed in a hotel. His total expenses, amounting to Rs. 3.30 lakhs, were reimbursed by Tata Electric Company. The question before us, therefore, is : whether the said amount is taxable as income of the assessee under the Act. The Assessing Officer held that the assessee was a regular employee of Tata Electric Company. That, during the aforestated period, the place of his duty was in India and not West Germany. That, he was given accommodation in a hotel in India under the terms of his deputation and, therefore the place where he ordinarily resided was in India and no ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ce where the duties of his office are performed, would constitute "income". On the other hand, it has been contended on behalf of the assessee that by no stretch of imagination, an amount paid by way of reimbursement could ever constitute an allowance. It was urged that the assessee came to India on a special assignment. That he was reimbursed to the extent of meeting hotel expenses. That, as correctly found by the Commissioner of Income-tax (Appeals) and the Tribunal, the assessee was not an employee of Tata Electric Company. That, in terms of the contract, the assessee was to be reimbursed by Tata Electric Company, subject to the maximum limit. That, even according to the Assessing Officer, it was a case of reimbursement. In the circumsta ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... The services of the assessees were obtained by the FCI under an agreement with an Italian firm. Under the agreement, the salaries were to be paid by the FCI in Italian Lire, but the daily allowances were to be paid directly in Indian rupees. One of the questions which arose before the High Court was : whether the daily allowance paid to the assessees was taxable as salary. It was held that in view of section 10(14) of the Income-tax Act, any special allowance granted to meet expenses incurred for the purpose of the duties of an office or employment was exempt from tax to the extent that such expenses were actually incurred for that purpose. It was also held that the word "perquisite" would also not apply to reimbursement of necessary disbur ..... X X X X Extracts X X X X X X X X Extracts X X X X
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