1987 (3) TMI 42

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..... ade at the instance of the Revenue. It raises the following question : "Whether, on the facts and in the circumstances of the case, the Tribunal was right in holding that the perquisites allowed to the foreign technicians would not be covered by section 40(c)(iii)/40(a)(v) of the Income-tax Act, 1961, and thereby deleting the disallowance made under section 40(c)(iii)/40(a)(v) to the extent of Rs .....

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..... the provisos to those sub-sections. The question referred to us arises out of this finding of the Tribunal. The provisos to section 40(c)(iii) and section 40(a)(v) of the Income-tax Act, 1961, read, in identical terms, thus : Provided further that nothing in this sub-clause shall apply to any expenditure which results directly or indirectly in the provision of any benefit or amenity or perquisit .....

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..... take the same view. The assessees' foreign technicians would receive salary which would be " nil " for the purpose of the aforementioned proviso. The perquisites paid to them would, therefore, not be covered by the provisions of sections 40(c)(iii) and 40(a)(v) of the Income-tax Act, 1961. Accordingly, the question is answered in the affirmative and in favour of the assessee. No order as to cos .....

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