COMMISSIONER OF INCOME TAX Vs. VINAY BHARAT RAM

JUDGEMENT

(1.) TWO questions of law have been referred to this Court under S. 256(1) of the IT Act at the instance of the CIT out of income -tax assessments of Shri Vinay Bharat Ram for the asst. yrs. 1965 -66, 1966 -67 and 1967 -68.

(2.) THE first question which is common to all the three years arises in the following circumstances :

(3.) THIS question is directly covered by a decision of this Court in CIT vs. Lala Shri Dhar (1972) 84 ITR 192. Exactly the same question came up for the consideration of this Court which held that the premium paid by the company could not be treated as perquisite in the hands of the employer either under cl. (iii) or (iv) of the Explanation to S. 7(1) of the Indian IT Act, 1922, which corresponds to the provisions of S. 17(2) of the INCOME TAX ACT, 1961. Following the decision of this Court in the above case, we hold that the Tribunal was correct in holding that the premium paid by the company on the accident policy, was not a perquisite and was, therefore, not taxable.