1971 (8) TMI 69

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....nder section 256(1) of the Income-tax Act, 1961, at the instance of the Commissioner of Income-tax is: " Whether, on the facts and in the circumstances of the case, the interpretation given by the Appellate Tribunal to Explanation (2) to rule 3 of the Income-tax Rules, 1962, was legal and proper and the consequent direction given for the deletion of income-tax paid by the employer, and the valu....

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....rder. The assessee appealed to, the Appellate Tribunal and relied on the Explanation to rule 3 of the Income-tax Rules, 1962. The Appellate Tribunal found that because the definition of "salary" in the Explanation to rule 3 of the Income-tax Rules, 1962, did not include perquisites, the income-tax paid by the employer and the allowances do not form part of the salary and cannot be taken into consi....

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.... The further question is whether the use of the car, electricity charges and profession tax should also be taken into account in determining the quantum of salary of the assessee for the purpose of rule 3 for computing the value of the rent-free accommodation. We do not think that use of car by the assessee can be an allowance within the meaning of the definition of salary; and therefore it has t....