- (1.) This is an appeal from an order of the High court of Bombay declining to direct the tribunal to state a case for its decision under the income Tax Act.
(2.) The respondent-assessee Company paid seven of its employees, in addition to what was described as their salary, certain amounts of bonus, commission and house rent allowance. Treating these items as perquisites within the meaning of Section 40 (a) (v) , the Income Tax Officer disallowed a sum of Rs. 47,440. 00. This was held to be the amount in excess of 20 per cent of their salary.
(3.) The Appellate Assistant Commissioner, however, allowed the appeal and on further appeal by the department the tribunal confirmed the order of the Assistant Commissioner. Though the tribunal observed in general that these items could not be treated as benefits or perquisites because they represented cash payments made by the company, it also found as a fact that the payments had been made in pursuance of resolutions of the Company and in accordance with the terms of employment of the employees in question.;