2007 (5) TMI 175

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....aning of section 17(2) (iii) (a) of the Income- tax Act, 1961 ?" The present reference relates to the assessment year 1990-91. 2. Briefly stated the facts giving rise to the present reference are as follows : The assessee an individual by status, is a director in a public limited company drawing salary of Rs. 24,000 per annum in addition to rent free accommodation and certain other perks. 3 Due to heart ailment, the assessee was advised bypass surgery outside India. An expenditure of Rs. 4,75,009 was incurred on his surgery at Texas in U. S. A., which included cost of treatment, medicines and travelling expenses for the assessee and one attendant which job was performed by his wife. 4 The Assessing Officer did not agree with ....

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....m paid by the employer in respect of any obligation which, but for such payment, would have been payable by the assessee." 8 From the perusal of the aforesaid clause, it appears that in order to qualify the amount to be a perquisite, it is necessary that the employer should have directly paid the amount to another person to discharge the obligation of the assessee. If the amount is paid by the employer towards reimbursement of the expenditure incurred by the assessee it would not fall under the aforesaid clause. Similar provision existed under section 40A(5) (a) (ii) and section 40(a) (v) inserted by the Finance (No. 2) Act, 1971, and Finance Act, 1968, with effect from April 1, 1969, respectively. The apex court in the case of CIT v. Ma....