COMMISSIONER OF INCOME-TAX Vs. PIARA SINGH

JUDGEMENT

(1.) At the instance of the Revenue, the following question of law has been referred to us by the Income-tax Appellate Tribunal, Amritsar Bench, Amritsar, along with the statement of the case, for our opinion :

(2.) The Income-tax Officer, while making the assessment for the assessment year 1976-77, found that the assessee was one of the directors of Auto Piston Manufacturing Company Private Limited, Batala Road, Amritsar. It was found by him that the director and his family were using the car of the company for their private purposes during the period, relevant to the assessment year 1976-77. It was also found that Auto Piston Manufacturing Company Private Limited had debited a sum of Rs. 83,809 as car expenses and l/3rd of these expenses had been surrendered by the company on account of the use of the company's car by the directors and the managing directors of the company and their families for their private purposes. The Income-tax Officer also found that the assessee had claimed a standard deduction of Rs. 1,000 under Section 16(i) of the Income-tax Act, 1961, which clearly showed that he had been provided with conveyance by the company. He calculated the perquisite value of the use of the car at Rs. 5,587.

(3.) The Appellate Assistant Commissioner considered the facts and was of the view that the perquisite value of the use of the car could be taken at Rs. 3,000 and allowed a relief of Rs. 2,587 to the assessee.