1999 (10) TMI 23

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

.... the Tribunal was justified in holding that the value of the perquisite of free imported car with chauffeur provided to the assessee by J. K. Cotton Spinning and Weaving Mills Limited in which he was a director should be the same as in the case of an employee of the company ?" The aforesaid question arises out of the Tribunal's orders dated January 17, 1981, and June 26, 1981, passed in ITA Nos. 1091 and 1919 of 1980 for the assessment years 1976-77 and 1977-78, respectively. We have heard Sri Shambhu Chopra, learned counsel for the Commissioner, and Sri V. K. Uppadhya, learned counsel for the respondent. The facts are that the assessee, the late Sir Padampat Singhania, was the chairman of the board of directors of J. K. Cotton Spi....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....rule 3 in terms applies to the determination of the perquisite value only in respect of the persons whose income is chargeable under the head "Salaries". It was, thus, contended on behalf of the Commissioner that the said rule applies only to an employee even though such an employee may be a director of the company. Since the assessee was not an employee, rule 3 could not be invoked. The relevant part of rule 3 dealing with the valuation of the perquisite value of a vehicle is as under : "(c)(i) The value of a motor-car provided by the employer for use by the assessee exclusively for his private or personal purposes shall be determined as the sum actually expended by the employer on the maintenance and running of the motor-car during the....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....---------------------------------------------------------- 2 3 -------------------------------------------------------------------------------------- Where the h.p. rating Where the h.p. rating of the car does not of the car exceeds16 exceed 16 or the cubic or the cubic capacity, capacity of the engine of the engine exceeds does not exceed 1.88 1.88 litres litres. ---------------------------------------------------------------------------------------- Rs. Rs. ---------------------------------------------------------------------------------------------------------------------------------------------------- (1) Where the motor-car is owned or hired by the employer and all the expenses on maintenance and running are met....