Law:

Section:

Section 40(c) of the Income-tax Act, 1961 - Business disallowance - Remuneration, etc., paid in excess of prescribed limit in case of company, etc. - Whether house rent allowance, conveyance allowance, cash allowance for lunch, club entrance fee paid to employees of assessee-company and expenses for repairs of flats occupied by such employees did not fall within expression 'benefit, amenity or perquisite' within meaning of section 40(c)(iii) and, therefore, allowable - Held, yes HELD The Tribunal was right in holding that house rent allowance, conveyance allowance, cash allowance for lunch, club entrance fee paid to the employees of the assessee-company and expenses for repairing the flats occupied by the such employees did not fall within the expression benefit, amenity or perquisite within the meaning of section 40(c)( iii) and in directing accordingly to allow the deduction on these counts. Note : The case was decided in favour of the assessee. CASE REVIEW CIT v. Warner Hindustan Ltd. [1984] 145 ITR 24 (AP); CIT v. Kanan Devan Hills Produce Co. Ltd.[1979] 119 ITR 431 (Cal.); CIT v. Tecalemit (Hind) Ltd.[1982] 137 ITR 285 (Cal.); Indian Leaf Tobacco Development Co. Ltd. v. CIT [1982] 137 ITR 827 (Cal.) and CIT v. General Marketing and Manufacturing Co. [1982] 7 CTC 348 followed and relied upon. CASES REFERRED TO CIT v. Warner Hindustan Ltd.[1984] 145 ITR 24 (AP), CIT v. Kanan Devan Hills Produce Co. Ltd.[1979] 119 ITR 431 (Cal.), CIT v. Tecalemit (Hind) Ltd.[1982] 137 ITR 285 (Cal.), Indian Leaf Tobacco Development Co. Ltd. v. CIT [1982] 137 ITR 827 (Cal.) and CIT v. General Marketing & Mfg. Co. [1982] 7 CTC 348. R.N. Dutta for the Applicant. A.C. Moitra and Sunil Mukherji for the Respondent. JUDGMENT Dipak Kumar Sen, J. - On an application of the Revenue under section 256(2)…

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