Unauthorised company car use not treated as taxable perquisite where factual finding showed no personal-use authorisation.

Unauthorised personal use of a company car by the assessee's family was examined as a possible perquisite under the Income-tax Act, 1961. The Tribunal's finding that the company had not authorised directors to use the car for personal purposes was treated as a finding of fact, and no interference was warranted in reference jurisdiction. On those facts, the use of the car was not treated as a taxable perquisite in the assessee's hands, and the issue was answered in favour of the assessee.

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Issues: Whether the unauthorised use of the company car by the assessee's family could be treated as a perquisite in the assessee's hands under the Income-tax Act, 1961.

Analysis: The Tribunal recorded a finding that the company had not authorised the directors to use the car for personal purposes. That finding was treated as one of fact. The court held that, on such facts, no interference was warranted in reference jurisdiction.

Conclusion: The question was answered in the affirmative against the Revenue and in favour of the assessee, and the car use was not treated as a taxable perquisite in the assessee's hands.

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