1998 (2) TMI 69

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....mployee for personal use is also permitted, such an employee can claim the benefit of the standard deduction in respect of the assessment for the assessment year 1977-78, is the question that arises for consideration in this reference made by the Tribunal at the instance of the Revenue. The assessee was a whole time executive director of Brakes India Limited. He was allowed the use of the car b....

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....ble to the employee wholly and exclusively for the purpose of his duties. Section 16 of the Act deals with the deductions from salaries. Under section 16(i)(b), the maximum deduction allowable is Rs. 3,500, That amount is liable to be reduced to Rs. 1,000, if any one or more of the contingencies contemplated in clauses (i) to (iii) of the proviso to section 16(i) is attracted. Clause (ii) of th....

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.... the Income-tax Rules and clause (C)(ii) deals with a situation like the one arising in this case mealy the use of a motor car by an assessee, such car having been provided by his employer, partly for the performance of his duties and partly for his private or personal purpose. The table under rule 3(C)(ii) statutorily provides that the value of perquisite by the employer is to be taken as Rs. 100....

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....essee, as here admittedly the employer had provided the vehicle, permitted personal use and had collected a sum of Rs. 100 for such personal user. The vehicle had clearly been provided for personal use as also for official purpose. Learned counsel also referred to the decision of this court in the case of CIT v. A. R. Adaikappa Chettiar [1973] 91 ITR 90. The court held that the unauthorised use....