WARRIER V P Vs. COMMISSIONER OF INCOME TAX

JUDGEMENT

(1.) BY this reference under Section 256(1) of the Income-tax Act, 1961, the Income-tax Appellate Tribunal, Indore Bench, Indore, has referred the following question of law to this court for its opinion :

(2.) THE material facts giving rise to this reference, briefly, are as follows : THE assessee is a partner in a partnership firm carrying on business in the name and style of Divya Industrial Products, Bhopal. For the assessment year 1979-80, while framing the assessment of the assessee, the Income-tax Officer found that the assessee was allowed by the firm the use of its residential premises, car and telephone. THE Income-tax Officer, therefore, included a sum of Rs. 15,000 as the value of perquisites in the income of the assessee under Section 28(iv) of the Act. On appeal, the Appellate Assistant Commissioner reduced the value of perquisites to Rs. 9,500. On further appeal before the Tribunal, the Tribunal rejected the contention urged on behalf of the assessee that the aforesaid benefits received by the assessee from the firm did not amount to perquisites under Section 28(iv) of the Act. THE Tribunal, however, held that a sum of Rs. 3,600 only was liable to be included in the income of the assessee. In this view of the matter, the Tribunal partly allowed the appeal. Aggrieved by the order passed by the Tribunal, the assessee sought reference and it is at the instance of the assessee that the aforesaid question of law has been referred to this court.