1982 (12) TMI 24

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..... ether, on the facts and in the circumstances of the case, the Appellate Tribunal was justified in holding that the cash payments on account of reimbursement of medical expenses of the employees could not be included in the value of benefit, amenity or perquisite for the purpose of disallowance in excess of the limits laid down under section 40(c)(iii) or section 40(a)(v) of the Income-tax Act, 1961 ? " So far as the second question is concerned, the point is concluded by the judgment of this court in the case of Indian Leaf Tobacco Development Co. Ltd. v. CIT [1982] 137 ITR 827 (Cal). Following that decision the second question is answered in the affirmative and in favour of the assessee. So far as the first question is concerned, the f .....

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..... er year and, therefore, there was really no change in the system of accounting followed by the assessee. It was secondly argued that the system followed for a number of years cannot be changed except for strong reasons and there was no strong reason present in this particular case. We are unable to accept these arguments. In the books of account of the assessee the shares are shown as capital assets and as such are not valued as closing stock at the end of the year. It is the common case of the assessee and the Department that these shares should be treated as on revenue account and, therefore, in spite of these shares being shown in the books of the assessee as on capital account year after year, the closing stock of the shares had been .....

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..... ndia Ltd. v. CIT [1978] 111 ITR 53 at pp. 69-70(Cal), in the matter of Chouthmal Golapchand [1938] 6 ITR 733 (Cal) and also in the case of Reform Flour Mills P. Ltd. v. CIT [1981] 132 ITR 184 (Cal). On behalf of the assessee reliance was placed on s. 211 of the Companies Act as also on s. 29 of the Banking Regulation Act. Reliance was placed on the observations of the Madras High Court in the case of Indo-Commercial Bank Ltd. v. CIT [1962] 44 ITR 22 (Mad). In view of the findings of fact made by the Tribunal it is not necessary to go into the controversies involved in those cases. In that view of the matter the first question is also answered in the affirmative and in favour of the assessee. In the facts and circumstances of the case, .....

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