https://www.taxtmi.com/caselaws?id=23319 The High Court of BOMBAY ruled in favor of the assessee regarding the deductibility of city compensatory allowance under section 16(v) of the Income-tax Act, 1961 for assessment years 1971-72 and 1972-73. The court held that the compensatory (city) allowance was not a source of profit to the recipient and was regulated based on expenses incurred due to posting in a particular place. The court emphasized that despite legislative changes, the allowance remained deductible under section 16(v) as it was not considered a perquisite. The judgment aligned with previous decisions and no costs were awarded in this case. en-us Tue, 20 Dec 1988 00:00:00 +0530 Fri, 18 Dec 2009 12:57:25 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=23319 The High Court of BOMBAY ruled in favor of the assessee regarding the deductibility of city compensatory allowance under section 16(v) of the Income-tax Act, 1961 for assessment years 1971-72 and 1972-73. The court held that the compensatory (city) allowance was not a source of profit to the recipient and was regulated based on expenses incurred due to posting in a particular place. The court emphasized that despite legislative changes, the allowance remained deductible under section 16(v) as it was not considered a perquisite. The judgment aligned with previous decisions and no costs were awarded in this case. Case-Laws Income Tax Tue, 20 Dec 1988 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=23319