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Section 28(iv) of the Income-tax Act, 1961 - Business income - Value of benefit or perquisite arising from business or profession - Whether value of perquisite by way of residential premises, car and telephone allowed by firm to its partner is chargeable to tax under section 28(iv) - Held, yes FACTS For the assessment year 1979-80, while framing assessment of the assessee, the ITO found that the assessee was allowed by the firm the use of its residential premises, car and telephone. The ITO, therefore, included a sum of Rs. 15,000 as the value of perquisites in the income of the assessee under section 28(iv). On appeal, the AAC reduced the value of perquisites to Rs. 9,500. On further appeal before the Tribunal, the Tribunal rejected the contention urged on behalf of the assessee that the aforesaid benefits received by the assessee from the firm did not amount to perquisites under section 28(iv). The Tribunal, however, held that a sum of Rs. 3,600 only was liable to be included in the income of the assessee. On reference: HELD As held by the Supreme Court in CIT v. P.M. Muthuraman Chettiar [1962] 44 ITR 710 and CIT v.Ramniklal Kothari [1969] 74 ITR 57 (SC), the business of a firm is a business carried on by everyone of its partners. The value of any benefit or perquisite received by the assesses arising from business would, therefore, be chargeable to income-tax by virtue of section 28(iv) of the Act. The Tribunal was, therefore, right in holding that a sum of Rs, 3,600 was includible in the income of the assessee under section 28(iv ). CASE REVIEW CIT v. P.M. Muthuraman Chettiar[1962] 44 ITR 710 (SC) and CIT v. Ramniklal Kothari[1969] 74 ITR 57 (SC)followed and relied upon. CASES REFERRED TO CIT v. P.M. Muthuraman Chettiar [1962] 44 ITR 710 (SC) and CIT v . Ramniklal Kothari [1969] 74 ITR 57 (SC). B.L. Nema for the Applicant. B.K. Rawat for the Respondent. JUDGMENT Sohani, Actg. CJ. -By this reference under section 256(1) of the Income-tax Act, 1961 ('the Act'), Tribunal, Indore Bench, Indore, has referred the following question of law to this Court for its opinion: "Whether, on the facts and in the circumstances of the case, the Tribunal was right in holding…

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