BRIGADIER NARULA Vs. COMMISSIONER OF INCOME TAX

JUDGEMENT

(1.) ON an application filed under Section 256(1) of the Income-tax Act, 1961, the Tribunal has referred the following questions for the opinion of this court:

(2.) THE assessee, an individual, was a managing director of a public sector undertaking, namely, Instrumentation Ltd. THE assessee declared an income of Rs. 30,207 that has been determined at Rs. 30,992. During the course of assessment it came to the notice of the Assessing Officer that the employer has provided a chauffeur driven car for the use of the assessee that was partly for official purpose and partly for non-official purpose. Even though the assessee claimed deduction of Rs. 2,400 under Section 16(i) of the Income-tax Act, 1961, that has been disallowed by the Income-tax Officer. THE Appellate Assistant Commissioner has allowed the claim of the assessee and the Tribunal has restored the view taken by the Assessing Officer,