Employee medical reimbursements not taxable as perquisites under Income-tax Act

The High Court of Bombay held that medical expenses reimbursed by the assessee to its employees are not 'perquisites' for tax purposes under section 40(a)(v) of the Income-tax Act, 1961, following precedent from a prior case.

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The High Court of Bombay ruled that medical expenses reimbursed by the assessee to its employees should not be considered as 'perquisites' for tax purposes under section 40(a)(v) of the Income-tax Act, 1961. The decision was based on the court's previous ruling in CIT v. Indokem Pvt. Ltd. [1981] 132 ITR 125.

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