https://www.taxtmi.com/caselaws?id=16902 An interest-free debit balance in a company's books, enjoyed by a director, was treated as a taxable benefit because the use of company funds without interest conferred a measurable advantage. The absence of a formal agreement did not prevent taxation, as the benefit itself was sufficient to attract the charge. The court approved the view that such a benefit could fall within the definition of income under section 2(24)(iv) and could also be treated as a perquisite under section 17(2)(iii) of the Income-tax Act, 1961. The Tribunal's contrary view was rejected, and the benefit was taxable in the director's hands. en-us Tue, 02 Dec 1997 00:00:00 +0530 Sat, 12 Sep 2009 18:30:44 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=16902 An interest-free debit balance in a company's books, enjoyed by a director, was treated as a taxable benefit because the use of company funds without interest conferred a measurable advantage. The absence of a formal agreement did not prevent taxation, as the benefit itself was sufficient to attract the charge. The court approved the view that such a benefit could fall within the definition of income under section 2(24)(iv) and could also be treated as a perquisite under section 17(2)(iii) of the Income-tax Act, 1961. The Tribunal's contrary view was rejected, and the benefit was taxable in the director's hands. Case-Laws Income Tax Tue, 02 Dec 1997 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=16902