9911796707
TMI Blog1989 (1) TMI 22X X X X Extracts X X X X X X X X Extracts X X X X ..... ds ?" The assessee is an individual and an employee of M/s. Mecotronics P. Ltd., of which her husband, during the relevant year, was the managing director. For the assessment year 1972-73, the assessment was completed on a total income of Rs. 27,713 and in the course of the examination of the accounts of Messrs. Mecotronics P. Ltd., it was found that the company had met the expenditure of Rs. 16,620 incurred by the assessee in respect of foreign tour in which she had accompanied her husband. Thereupon, the assessment was reopened under section 147(a) of the Act and the Income tax Officer subjected to tax the amount of Rs. 16,620 as perquisite. On appeal by the assessee, the Appellate Assistant Commissioner took the view that there was no ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... y as a perquisite falling within section 17(2)(iv) of the Act and subjecting it to tax as well. Before proceeding to consider these rival submissions, we may notice few undisputed facts. The assessee had, as a matter of fact, undertaken foreign tour. That tour was not in connection with the business of the company and the company had also not claimed the expenses incurred, in connection with the foreign tour of the assessee as business expenditure it is in the light of these undisputed facts that the applicability of section 17(2)(iv) of the Act has to be considered. Section 17(2)(iv) of the Act is as under: "17(2) 'perquisite' includes (iv) any sum paid by the employer in respect of any obligation which, but for such payment, would h ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he expenses incurred in connection with that tour ? and (iii) was that obligation discharged by the employer by payment of the amount ? On the undisputed facts in this case, the answer to all the aforesaid three questions would only be "yes". In that event, there is no escape from the conclusion that the amount paid by the company in discharge of the obligation of the assessee to meet the expenses of her private or personal foreign tour should be regarded as a perquisite falling under section 17(2)(iv) of the Act. Though, on behalf of the Revenue, reference to some decisions was made, we find that none of them is in point and, therefore, we are relieved of the necessity of making any reference to them. On a consideration of the factual posi ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
