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TMI Blog2008 (1) TMI 317X X X X Extracts X X X X X X X X Extracts X X X X ..... M. KUMAR and RAJESH BINDAL JJ. Akshay Bhan, for the assessee. S.K. Garg Narwana, for the Commissioner. JUDGMENT The Judgment of the court was delivered by RAJESH BINDAL, J. - By this order, we shall dispose of two references bearing Income Tax Reference Nos. 102 and 103 of 1992. 2. The Income Tax Appellate Tribunal, Chandigarh Bench, Chandigarh (for short "the Tribunal") vide its common order dated 22.5.1990 arising out of ITA No. 683/Chandi/88 and ITA No. 734/Chandi/88 has referred the following questions of law under Section 256 (1) of the Income Tax Act, 1961 (for short "the Act") for the assessment year 1981-82 for the opinion of this Court:- In ITR No. 102 of 1992 "1. Whether, on the facts and in the circumstances of the case, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nce could be made on account of the same. The assessee relied upon order dated 29.1.1986 passed by the Tribunal in ITA No. 378/Chandi/84 for the assessment year 1980-81 in the case of M/s Vardhman Spinning & General Mills Ltd., Ludhiana whereby it was held that for determining the disallowance out of the remuneration etc. paid to the directors, Section 40 (c) of the Act was relevant. The CIT (A) rejected both the contentions of the assessee and held that the company would be entitled to a deduction of Rs. 72,000/- per annum in respect of salary remuneration paid to its Directors under sub-section (5) (a) of Section 40A of the Act. It was also held that since the assessee's case is covered under Section 40A (5) of the Act, the amount of rent ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t of Hon'ble the Supreme Court in Commissioner of Income Tax v. Mafatlal Gangabhai and Co. (P) Ltd. [(1996) 219 ITR 644], has already considered the issue regarding payment of amount of group insurance scheme, cash payments on account of electricity, gas and water charges and held the same to be not in the kind of perquisites for the purpose of Section 40A (5) of the Act. Accordingly, for the reasons stated in H.M.M. Limited's case [(2001) 252 ITR 842], it is held that payment on account of rent, electricity, water and fuel bills shall not be considered as perquisite for the purpose of Section 40A (5) of the Act. I.T.R. No. 103 of 1992 7. Facts in detail on this issue are not required to be mentioned as an identical issue has been conside ..... X X X X Extracts X X X X X X X X Extracts X X X X
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