CET Vs. LAXMIPAT SINGHANIA

JUDGEMENT

(1.) THIS is a reference under Section 25(1) of the Expenditure-tax Act, 1957, at the instance of the Commissioner of Expenditure-tax, U.P., Lucknow.

(2.) THE reference arises out of assessments under the Expenditure-tax Act for the assessment years 1958-59 and 1959-60. THE assessee, Laxmipat Singhania, was at the material time a financial adviser to a limited company known as the J. K. Jute Mills Co. Ltd. On April 10, 1956, that company passed a resolution that the assessee should be allowed free furnished residential accommodation in its house known as J. K. House, at 12, Alipur Road, Calcutta. THE assessee was not to receive any other remuneration. While making the assessment under the Expenditure-tax Act, for the two years in question, the Expenditure-tax Officer included in the total expenditure of the assessee the following two items amongst others.