9911796707
TMI Blog1977 (10) TMI 6X X X X Extracts X X X X X X X X Extracts X X X X ..... nd the expenses incurred both by the assessee and his wife were met by the company. So far as the expenditure incurred on the assessee was concerned, it was treated as business expenditure in the hands of the company. That expenditure was not treated as a perquisite of the assessee. The ITO thought that the expenditure relating to the assessee's wife would come within the meaning of " perquisite " under s. 17 of the I.T. Act, 1961, and added that amount to the income of the assessee. It may be relevant to say that in so far as the company's assessment is concerned, the expenditure incurred on the assessee on his business tour was allowed as a business expenditure ; but the expenditure incurred by the company on the assessee's wife on the bu ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... especting any accommodation provided to the assessee by his employer ; (iii) the value of any benefit or amenity granted or provided free of cost or at concessional rate in any of the following cases-- (a) by a company to an employee who is a director thereof ; (b) by a company to an employee being a person who has a substantial interest in the company ; (c) by any employer (including a company) to an employee to whom the provisions of paragraphs (a) and (b) of this sub-clause do not apply and whose income under the head ' Salaries ', exclusive of the value of all benefits or amenities not provided for by way of monetary payment, exceeds eighteen thousand rupees ;... " It is the case of the revenue that the expenditure incurred was in ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s for me to say you will be required to entertain several business guests and you know the names. I have no doubt you and your wife will be welcomed by all our business friends in London and Canada. " It is under the company's request that the wife of the assessee accompanied him on his business tour to London and Canada. The expenditure incurred by the wife was met by the company and not by the assessee. The deduction claimed by the company in respect of the expenses incurred by it on the foreign tour of the assessee's wife, were disallowed by the department and that has become final. When no part of the expenditure of the wife of the assessee was met by the assessee or given to him by the company and the entire expenditure involved was m ..... X X X X Extracts X X X X X X X X Extracts X X X X
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