Commissioner of Income-tax Vs. Greaves Cotton and Co. Ltd - Court Judgment

SooperKanoon Citationsooperkanoon.com/350354
SubjectDirect Taxation
CourtMumbai High Court
Decided OnMar-05-1991
Case NumberIncome-tax Reference No. 299 of 1977
JudgeD.R. Dhanuka and ;T.D. Sugla, JJ.
Reported in[1991]191ITR267(Bom)
ActsIncome Tax Act, 1961 - Sections 40(A)
AppellantCommissioner of Income-tax
RespondentGreaves Cotton and Co. Ltd
Appellant AdvocateDr. V. Balasubramanian, Adv.
Respondent AdvocateMiss. H.R. Doshi, Adv.
Excerpt:
- indian penal code, 1860 [c.a. no. 45/1860].sections 124-a, 153-a, 153-b, 292, 293 & 295a; [f.i. rebello, smt v.k. tahilramani & a.s. oka, jj] declaration as to forfeiture of book held, the power can be exercised only if the government forms opinion that said publication contains matter which is an offence under either of sections 124-a, 153-a, 153-b, 292, 293, 295a of i.p.c., t.d. sugla, j. 1. in this departmental reference relating to the assessee's assessment for the assessment years 1968-69 and 1969-70, the tribunal has referred to this court the following question of law under section 256(1) of the income-tax act, 1961 : 'whether, on the facts and in the circumstances of the case and on a proper construction of section 40(a)(v) of the income-tax act. 1961, and/or the relevant circulars of the central board of direct taxes on the subject, the commission, car allowance and bonus paid by the assessee to its employees were not to be treated as perquisites for the purposes of the said section ?' 2. counsel are agreed that, in view of our court's judgment in the case of cit v. indokem private ltd. : [1981]132itr125(bom) , the question is to be answered in the affirmative and in favour of the assessee. the question is so answered. 3. no order as to costs.
Judgment:

T.D. Sugla, J.

1. In this departmental reference relating to the assessee's assessment for the assessment years 1968-69 and 1969-70, the Tribunal has referred to this court the following question of law under section 256(1) of the Income-tax Act, 1961 :

'Whether, on the facts and in the circumstances of the case and on a proper construction of section 40(a)(v) of the Income-tax Act. 1961, and/or the relevant circulars of the Central Board of Direct Taxes on the subject, the commission, car allowance and bonus paid by the assessee to its employees were not to be treated as perquisites for the purposes of the said section ?'

2. Counsel are agreed that, in view of our court's judgment in the case of CIT v. Indokem Private Ltd. : [1981]132ITR125(Bom) , the question is to be answered in the affirmative and in favour of the assessee. The question is so answered.

3. No order as to costs.