https://www.taxtmi.com/caselaws?id=64666 An interest-free loan advanced by a company to its employee-director was held not taxable as a perquisite under section 17(2)(iii) or as income under section 2(24)(iv) of the Income-tax Act, 1961. The Tribunal held that section 2(24)(iv) applies only where a benefit or perquisite is obtained from a company on a legal basis, and the facts did not bring the loan within that provision. It also found that the company had substantial own reserves and surplus, and no cost by way of interest to the company was shown. In the absence of a contractual obligation and any demonstrable company cost, the addition was deleted and the assessee's position was upheld. en-us Thu, 29 Sep 1983 00:00:00 +0530 Wed, 09 Feb 2011 12:05:11 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=64666 An interest-free loan advanced by a company to its employee-director was held not taxable as a perquisite under section 17(2)(iii) or as income under section 2(24)(iv) of the Income-tax Act, 1961. The Tribunal held that section 2(24)(iv) applies only where a benefit or perquisite is obtained from a company on a legal basis, and the facts did not bring the loan within that provision. It also found that the company had substantial own reserves and surplus, and no cost by way of interest to the company was shown. In the absence of a contractual obligation and any demonstrable company cost, the addition was deleted and the assessee's position was upheld. Case-Laws Income Tax Thu, 29 Sep 1983 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=64666