COMMISSIONER OF INCOME TAX Vs. BRITANNIA INDUSTRIES CO LTD

JUDGEMENT

(1.) On the oral application of the learned advocate for the revenue, the name of the respondent in the cause title is changed to Britannia Industries Company Ltd.

(2.) In this reference, we are posed with a short point, viz.:

(3.) This reference, at the instance of the Commissioner of Income-tax, West Bengal-IV, Calcutta, under Section 256(1) of the I.T. Act, 1961, relates to the assessment year 1966-67. For this assessment year, the assessee, which is a limited company, claimed that the value of the perquisite of free car provided to the employees should be worked out under Rule 6D of the I.T. Rules, 1962. The ITO, however, did not agree with the assessee-company and, instead, held that the value of the perquisite of the free car provided to employees should be 50 per cent. of the expenditure on running and maintenance of the car and on this basis the ITO worked out the addition in excess of the ceiling laid down under Section 40(c)(iii).