Law: Income Tax Ordinance, 1979

Section:

(a) Income-tax-----Deduction---Gratuity---Admissibility---Only amount which is admissible under the head "gratuity" is the one which is transferred to the gratuity fund trust by the assessee---Remaining amount under the head of gratuity, if any, has to be added back to the total income of the assessee. (b) Income-tax--- ----Deduction---Golden shake hand ---Deduction---Admissibility---Addition--- Apportionment of expenses on account of golden shake hand is not sustainable in law ---Addition made by the Assessing Officer was ordered to be deleted with a direction to the Assessing Officer to allow entire accounts of golden shake hand as claimed. (c) Income-tax--- ----Deduction---Perquisite---Amount paid by assessee to employees under a Provincial law cannot be treated as perquisite but had to be included in salary. (d) Income-tax--- ----Deduction---Perquisites---Excess perquisites---Washing allowance and uniform allowance paid by assessee has to be treated as excess perquisites. (e) Income-tax--- ----Deduction---Perquisite---Ex gratia incentive---Whether excess perquisite are part of salary. (f) Income-tax--- ----Perquisite---Medical reimbursement has to be treated as perquisite. 1996 PTD (Trib.) 100 fol. ORDER MUHAMMAD MUJIBULLAH SIDDIQUI (CHAIRMAN). ---The above cross appeals at the instance of assessee (hereinafter referred to as the appellant) and department (hereinafter referred to as the respondent) are directed against the order dated 3-7-1996 relating to the assessment year 1993-94. 2. Heard Mr. Zia H. Rizvi, learned representative for the appellant and Mr. Shafqat Mehmood, learned D.R. for the respondent. We will take up the appeal at the instance of assessee first. 3. The first objection raised on behalf of the appellant is to the insufficient relief allowed in respect of the claim on account of gratuity. A perusal of the assessment order shows that the assessee, a public limited company, added the amount of Rs.29,19,572 to the net profit as per profit and loss account which was initially debited to the profit and loss account and thereafter deducted the amount of Rs.2,11,68,461 on account of gratuity paid to the employees. A perusal of assessment order…

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