COMMISSIONER OF INCOME TAX Vs. KINI M R

JUDGEMENT

(1.) AT the instance of the Revenue, the following question of law has been referred for the decision of this court :

(2.) THE respondent is an assessee to income-tax. His employer provided a cash allowance of Rs. 200 per mensem to him for meeting the refreshment expenses during office hours. This was brought to tax by the assessing authority. In appeal, the Appellate Assistant Commissioner held that refreshment provided during office hours cannot be taken as a perquisite and so the cash allowance cannot be taxed. In appeal by the Revenue, the Appellate Tribunal held that since this is a provision for meeting the expenditure on refreshments provided to employees during lunch hour, it cannot be treated as the income of the assesses and so is not taxable. It is thereafter at the instance of the Revenue that the above question of law has been referred for the decision of this court.

(3.) A copy of this judgment under the seal of this court and the signature of the Registrar will be forwarded to the Income-tax Appellate Tribunal Cochin Bench.