LALA LAKSHMIPAT SINGHANIA Vs. COMMISSIONER OF INCOME TAX

JUDGEMENT

(1.) AT the instance of the assessee, Lakshmipat Singhania, the Income-tax Tribunal, "B" Bench, Allahabad, has referred the following question in respect of the assessment years 1962-63, 1963-64 and 1964-65 for the opinion of this court :

(2.) THE facts leading to the present reference briefly stated are that the assessee, L. Lakshmipat Singhania, was a director of J. K. Jute Mills Co. Ltd. in the years 1955-56 and 1956-57. He resigned as a director in the year 1956. Later on he was appointed as a financial adviser to the J.K. Jute Mills Co. Ltd. and was allowed free use of the company's premises known as J. K. House at 12, Alipur Road, Calcutta, vide company's resolution dated April 19, 1956. He continued to act as the financial adviser of the company during the assessment years in question. THE income-tax authorities computed the value of the aforesaid perquisite enjoyed by the assessee, and included the same in his income. THE claim of the assessee that, as he was enjoying the perquisite in his capacity as a financial adviser, it did not fall within the definition of the word " income " as defined in Section 2(24)(iv) of the Income-tax Act, 1961, was not accepted by the Tribunal, which at the instance of the assessee stated the case and referred the aforesaid question for the opinion of this court.

(3.) IN the result, we ,answer first part of the question referred to us in the negative and in favour of the department. Second part, of the question, viz., whether the income was assessable in the hands of the assessee for the assessment years in question is answered in the affirmative and in favour of the department. The department is entitled to costs which we assess at Rs. 200.