TaxTMI 
TaxTMI 
1998 (11) TMI 60
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....e Tribunal was right in law in holding that the assessee was entitled to depreciation on technical know-how capitalised at Rs. 10 lakhs ? (ii) Whether, on the facts and in the circumstances of the case, the Tribunal was justified in holding that for the purposes of computing the disallowance under section 40A(5) of the Income-tax Act, the provisions of rule 3(c)(ii) of the Income-tax Rules should be invoked ? (iii) Whether, on the facts and in the circumstances of the case, the Tribunal was right in law in holding that the excess of expenditure incurred by an assessee in connection with the travelling of an employee should be worked out under rule 6D(2), for the whole of period spent outside the head quarters during the year and not b....
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....Rules. The Commissioner of Income-tax (Appeals) concurred with the Assessing Officer and rejected the contention of the assessee. The case of the assessee before the Income-tax Appellate Tribunal was that under rule 6D(2) of the Rules the total number of days travelled by each employee during the year should be taken together and considered and not with reference to each trip made by an employee. The Tribunal relying on a decision of the Income-tax Appellate Tribunal Bombay in the case of Blackie and Sons (India) Ltd. vs Income-tax Officer came to the conclusion that the plea of the Revenue is not correct. It accordingly following that decision allowed consequential relief due to the assessee under this head. Learned counsel appearing....
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....ction with such travel, an amount calculated at the following rates for the period spent outside such headquarters : (i) in respect of employee whose salary is Rs. 1,000 per month or more -- Rs. 80 per day or part thereof; (ii) in respect of any other employee -- Rs. 40 per day or part thereof; (iii) in respect of any other person -- an amount calculated at the rates applicable in the case of the highest paid employee of the assessee: Provided that if the stay of such employee or other person outside his headquarters is at Bombay, Calcutta or Delhi, the amount computed at the aforesaid rates shall be increased by a sum equal to fifty per cent. of such amount : Provided further that in a case where such employee or other person o....
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.... the stay of such employee or other person is at Bombay. Calcutta or Delhi the amount computed at the prescribed rates shall be increased by a sum equal to fifty per cent. of the such amount. Further proviso below the proviso to clause (b) ibid provides that in a case where such employee stays outside his headquarters in a rent-free accommodation or in a guest house maintained by the assessee the amount payable to him shall be calculated at one-third of the prescribed rates. A combined reading of the aforesaid rule and the provisos appearing thereunder clearly goes to show that this rule refers to an employee and such employee at more than one place. Thus it cannot be said that the assessee is entitled to allowance of an expenditure i....