Law:

Section:

I. Section 17 (2) of the Income-tax Act, 1961 - Salaries - Perquisite - Assessment years 1994-95 and 1995-96 Expenditure incurred by assessee-company for providing travel accessories or communication or other accessories to officers, is for business of assessee and is not a perquisite in officers' hands [In favour of assessee] Where the assessee-company had provided its employees travel accessories allowance and the question was whether it was a perquisite from which the assessee was liable to deduct tax at source: Held that, so far as the expenses incurred by the company for providing travel accessories or communication and other accessories were concerned, such expenses were required to be incurred by the officers for the business promotion and for the benefit of the assessee. If the officers had spent money and if the same was reimbursed by the company, such expenses were for the benefit of the assessee and not for the benefit of its employees. Therefore, the said category did not fall under section 17(2)( iv) to be treated as perquisite in officers' hands. II. Section 17 (2) of the Income-tax Act, 1961 - Salaries - Perquisite - Assessment years 1994-95 and 1995-96 If company has provided money to an officer to purchase club membership and if subscription and amounts incurred by officers for their personal benefit are reimbursed by company, such amounts spent by officers of company cannot be considered as business promotion expenses ; in such event, that would fall under section 17(2)(iv ) [Case remanded] If the company has purchased the club membership on its own and permitted its senior officers to entertain the official guests of the company and reimbursed the expenditure incurred by such officer whenever guests of the company are taken to the clubs, one can certainly appreciate that the company in order to entertain the company guests is required to spend the amount on behalf of the company. If the company has provided money to an officer to purchase the club membership and if the subscription and the amount incurred by the officers for their personal benefit is reimbursed by the company, such amounts spent by the officers of the company cannot be…

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