Company Payments to Employees Not 'Perquisites' Under Income-tax Act

The High Court of Bombay ruled in favor of the assessee, holding that certain payments made by the company to its employees were not 'perquisites' for the purpose of disallowances under section 40A(5) of the Income-tax Act, 1961 for the assessment year 1973-74. This decision aligned with a prior judgment in the assessee's favor, with no costs awarded.

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The High Court of Bombay ruled in favor of the assessee regarding the assessment year 1973-74, stating that house rent allowance, personal accident insurance premia, and club subscriptions paid by the company to its employees are not considered 'perquisites' for the purpose of disallowances under section 40A(5) of the Income-tax Act, 1961. This decision followed a previous judgment in the assessee's favor. No costs were awarded.

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