- (1.) The Income Tax Appellate Tribunal, Meerut, has referred following question Of law under section 256(1) of the Income Tax Act., 1961 (hereinafter referred to as 'the Act') for opinion to this Court: "1. Whether, on the facts and in the circumstances of the case, the Tribunal was correct in confirming the deletion of addition of Rs. 18, 165 in view of first proviso to section 40A(5) of Income Tax Act, 1961 The reference relates to the assessment year 1983-84.
(2.) Briefly stated the facts giving rise to the present reference is as under: The respondent-assessee is a company, which is engaged in the manufacture and sale of transformers. During the assessment year in question, it had provided a car to its director and also provided air are ticket to the family of one of his director Sri Mohit Kunrar. The assessing authority had disallowed a sum of Rs. 18,156 under section 40A(5)(c) of the Income Tax Act as per the following details: JUDGEMENT_317_LAWS(ALL)2_2005_1.html
(3.) Feeling aggrieved the respondent preferred an appeal before the Commissioner of Income-tax who has deleted the addition of Rs. 12,87,510, which order has been upheld by the Tribunal on the finding that the total of salary and the perquisites received by each of the employee-directors was less than Rs. 72,000. In view of the first proviso to section 40A(5), the Tribunal held that in such a case where the overall limit of Rs. 72,000 %vas not exceeded, no separate disallowance could be made in respect of perquisites.;