- (1.) THE Revenue has preferred this reference application under s. 256(2) of IT Act, 1961 to seek reference of the following questions : "(i) Whether on the facts and in the circumstances of the case, the Tribunal was legally justified in deleting the addition made by the AO on account of perquisites in respect of rent free accommodation and other amenities ? (ii) Whether on the facts and in the circumstances of the case the finding of the Tribunal that no benefit was provided to the assessee because of his stay in the Umaid Bhawan Palace, and that he has a separate residence in the form of a Bal Samand Palace for his residence, is not unreasonable and contrary to the real of things and hence perverse -
(2.) A reference application was earlier moved before the Tribunal under s. 256(1) of the IT Act, 1961, which was deciding the appeal, hence Tribunal having refused to refer the matter, Revenue preferred this application before this Court.
(3.) THE brief facts giving rise to the present matter are that an addition of Rs. 1,64,000 was made in the hands of assessee on account of perquisites in the form of rent free accommodation and other amenities. The Tribunal deleted Learned counsel appearing for the Revenue urged that a legal issue is involved in the question sought to be referred, therefore this Court may call for reference from the Tribunal. Referring to s. 2(24)(iv), it was argued that even perquisites or benefits whether convertible into money or not obtained from a company either by director or a person who has a substantial interest in the company and such payment would have been payable by the director or other persons additions can be made, therefore, it was prayed that the legal issue having involved in the matter, the reference should be called by this Court.;