9911796707
TMI Blog1991 (6) TMI 97X X X X Extracts X X X X X X X X Extracts X X X X ..... IT(A) reduced the addition to Rs. 13,000, adopting the value of the perquisites @ Rs. 2,000 per month for the period from 21-9-1981 to 31-3-1982, as the food expenses for the period prior to 21-9-1981 could not, in his opinion, be treated as perquisites. He, therefore, directed the ITO to delete the addition of Rs. 49,208 from the assessment of the assessee. 3. The revenue is aggrieved and submitted that the reimbursement of food expenses incurred in a hotel by the assessee would be taxable income. For this purpose, he relied upon the decision of the Tribunal in the case of Earl W. Tallent v. Second ITO [1987] 20 ITD 512 (Bom.). The amount of expenses, he submitted, was ascertained and known and was actually paid by the employer and, ther ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the decision of the Gujarat High Court in the case of Acharya D.V. Pande v. CIT [1965] 56 ITR 152 at 165-172 and that of the Patna High Court in CIT v. S.P. Jain [1967] 65 ITR416 at 4l8. In any case, he submitted, that the value of food which the employee could get on its sale, i.e., as a second hand price, alone could be added and that being ' nil ' in case of food served, no perquisite value could be added. It was further submitted that the value adopted by the CIT(A) was fair and reasonable and no interference is called for. The learned Departmental Representative, in reply, objected to the assessee's raising the non-taxability of perquisite, in the absence of either any cross-objection or cross-appeal and also referred to the decision ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... r circumstances, living allowance represented by hotel bills, were held taxable by the Tribunal in the case of Earl W. Tallent after considering the decision of the Gujarat High Court in the case of S.G. Pgnatale For the reasons stated therein, we also reject the contention of the assessee that the amount was exempt under section 10(14) of the Act, inasmuch as the said section excludes the perquisites within the meaning of section 17(2) of the Act, provided the duty is at a place other than the place where the assessee ordinarily performs his services. 6. The aforesaid decision of the Gujarat High Court was found to be of no help after the insertion of the Explanation in section 9(1)(ii) of the Act, to the following effect : " For the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... case the assessee was in the employment of Banque Indosuez throughout the year and the expenses on his food have been borne by them. We, therefore, reject the contention of the assessee that no perquisite could be added in his hands for the period prior to 21-9-1981 as, in our opinion, the assessee was the employee of M/s. Banque Indosuez throughout the year and the opening of the Indian Branch on 21-9-1981 would not change the situation. 7. The next contention of the assessee is that the facility of food provided to him could not be assessed to tax as it was not convertible into money or moneys worth. The cases relied upon by the assessee in this connection were under U.K. Income-tax Act, 1952, where 'perquisite' has not been defined an ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... amenity provided to the assessee out of perquisite, but they have held such facility not assessable by maintaining their earlier view, that is unless it is convertible into money or moneys worth, it would not be assessable to tax. Had there been no definition under the Income-tax Act of the term " perquisite ", including therein the value of the benefit or amenity or the amount paid by the employer in respect of the obligation of the employee, the assessee would not have been taxed on the authority of the aforesaid two English decisions and the decisions of the Gujarat and Patna High Courts. We, therefore, hold that the contention of the assessee that perquisite could not be assessed unless it is convertible into money or moneys worth is n ..... X X X X Extracts X X X X X X X X Extracts X X X X
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