CIT, MEERUT Vs. ELECTRA (INDIA) LTD

JUDGEMENT

(1.) The Income Tax Appellate Tribunal, Meerut, has referred following question Of law under section 256(1) of the Income Tax Act., 1961 (hereinafter referred to as 'the Act') for opinion to this Court:

(2.) Briefly stated the facts giving rise to the present reference is as under:

(3.) Feeling aggrieved the respondent preferred an appeal before the Commissioner of Income-tax who has deleted the addition of Rs. 12,87,510, which order has been upheld by the Tribunal on the finding that the total of salary and the perquisites received by each of the employee-directors was less than Rs. 72,000. In view of the first proviso to section 40A(5), the Tribunal held that in such a case where the overall limit of Rs. 72,000 %vas not exceeded, no separate disallowance could be made in respect of perquisites.