1972 (4) TMI 29

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....er section 66(1) of the Income-tax Act. It relates to the assessment years 1955-56 and 1956-57. The following common question of law arises in both the years which has been referred to us for opinion : " Whether, on the facts and in the circumstances of the case, the rent-free accommodation, the other benefits provided to the assessee M/s. J. K. Jute Mills Co. Ltd. during the relevant years, we....

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.... is aggrieved and has brought this reference before us. Clause (iii) of section 2(6C) of the Indian Income-tax Act, 1922, provides that income includes the value of any benefit or perquisite, whether convertible into money or not, obtained from a company either by a director or by any other person who has a substantial interest in the company. It is not disputed that the rent-free accommodation....

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.... the benefit is received by a person in the capacity of a director and not merely because he happens to be a director. We find no force in this contention either. As soon as a person receives a benefit from a company and he happens to be a director of that company, section 2(6C) would immediately be attracted and the value of such benefit would be deemed to be his income. There is no further requi....

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....nder an enforceable right. Whether the assessee received the perquisite or the benefit from the company under an enforceable right or not is a question which was never raised by the assessee before the Tribunal. The onus lay upon the assessee to assert and prove that the benefit was given to him not under any enforceable right. Moreover, as we have already indicated above, no such requirement is c....