KORES INDIA LIMITED Vs. COMMISSIONER OF INCOME TAX

JUDGEMENT

(1.) THIS is the assessee's reference relating to its assessment for the assessment year 1973 -74. 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, the payment of house rent allowance, personal accident insurance premia and club subscriptions by the assessee -company to its employees are 'perquisites' for the purposes of working out the disallowances in the case of the assessee for the accounting period relevant to the assessment year 1973 -74 under section 40A(5) of the Income -tax Act, 1961 ?'

(2.) COUNSEL are agreed that a similar question came up for consideration before this court in the assessee's own case in Income -tad Reference No. 230 of 1976 and Income -tax Reference No. 245 of 1976 and that our court answered the question in the affirmative and in favour of the assessee, vide judgment dated December 9, 1988. Following that judgment, the question herein is, accordingly, answered in the negative and in favour of the assessee.