PREM RAJ LOONAWAT Vs. COMMISSIONER OF INCOME TAX

JUDGEMENT

(1.) THE Tribunal has referred the following question of law arising out of its order dt. 6th July, 1982, in respect of asst. year 1978 -79 under S. 256(1) of the IT Act, 1961 :

(2.) THE brief facts of the case are that the assessee is a partner in the firm M/s Anand Gum Industries, Jodhpur carrying on business at Bombay. The assessee -firm purchased a flat known as 'Matri Ashish' at Napean Sea Road, Bombay, for a sum of Rs. 1,71,000. The assessee who is looking after the business of the firm at Bombay occupied 2/3rd portion of the said flat for his personal residence and the remaining 1/3rd portion was used for the purpose of the business of the firm. The ITO was of the view that the assessee derived the benefit or perquisites because of occupation of the flat and, therefore, S. 28(iv) of the IT Act was attracted. The value of such benefit was estimated by the ITO at Rs. 8,000 on the basis of the decision of CIT(A) in respect of asst. year 1977 -78 where similar addition was upheld by the CIT(A). The decision in the case of M.Ct. Muthiah vs. CIT (1974) 97 ITR 516 (Mad) was also taken into consideration.

(3.) IN appeal before the CIT(A) the order of assessment was upheld. The matter was challenged before the Tribunal and following the view taken in previous assessment year, the second appeal was also dismissed.