Law:

Section:

Income tax Employment Collateral agreement Scheme by employer to provide housing assistance to employees Loss on sale of dwelling on transfer to new place of work to be made up by employer Income tax Act, 1952 (15 & 16 Geo. 6 & I Eliz. 2, c. 10) S. 156 (2), Sch. 9, Rules applicable to Sch. E. r. 1 Expenses¬-Benefit to employee Whether reimbursement on loss on sale or house an "expense" Income tax Act, 1952 (15 & 16 Geo. 6 & 1 Eliz. 2, c. 10), S. 160. Imperial Chemical Industries Ltd. was a very large company owning numerous factories in different places, and employing a very large staff, many of whom were required by their service agreements to be prepared to serve the employers wherever required. In order to assist in the housing of married male employees of certain grades, and to facilitate their transfers, the employers designed a scheme whereby they assisted by interest¬-free loans to a certain extent towards the purchase of houses by such staff. The scheme further provided, inter alia, that if on transfer the employee wished to sell or let his house, he was to give an option to the employers to purchase it at a fair valuation; if the option was refused, he was free to sell it, but in either case the employers guaranteed him against any capital loss, provided that the house had been maintained in good repair. Employees who accepted the scheme were required to enter into formal agreements, the terms of which were in accordance with the provisions of the scheme. M. was employed from 1941 under various contracts requiring him to work at such of their factories as I. C. I should direct. In 1951 M., entered into an agreement with his employers pursuant to the housing scheme. M., in pursuance of that agreement, bought a house for £1,850 of which £300 was advanced to him by the employers by way of interest free loan. On his transfer to another factory in 1954 M. sold the house with the consent of the employers for £1,500, and they paid him the sum of £350 to compensate for his loss. M. was assessed under Schedule E* to income tax on the sum of £350 : *Income tax Act, 1952, section 156 (2) : "Tax under this Schedule shall also be charged in respect…

Deprecated: trim(): Passing null to parameter #1 ($string) of type string is deprecated in /home/digixyei/sldsystempk.com/view/master-layout/view_case.php on line 492