Employee allowances and flat-repair expenses were outside the "benefit, amenity or perquisite" disallowance under income-tax law.

House rent allowance, conveyance allowance, lunch allowance, club entrance fee paid to employees, and repair expenditure on employee-occupied flats were held not to fall within "benefit, amenity or perquisite" for disallowance under section 40(c)(iii) of the Income-tax Act, 1961. The Calcutta High Court followed its earlier decisions on the same point and treated those employee-related payments and expenses as outside the disallowance provision. The question was answered in favour of the assessee.

---

---

Issues: Whether house rent allowance, conveyance allowance, lunch allowance, club entrance fee paid to employees, and expenditure on repairs to flats occupied by employees fell within the expression "benefit, amenity or perquisite" under section 40(c)(iii) of the Income-tax Act, 1961.

Analysis: The question was covered by prior decisions of the same court, which had held that such employee-related allowances and expenses did not constitute benefits, amenities, or perquisites for the purpose of disallowance under section 40(c)(iii). Following that settled view, the amounts in question could not be brought within the disallowance provision.

Conclusion: The question was answered in the affirmative and in favour of the assessee.

---