1995 (11) TMI 10

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....ing questions relating to the assessment years 1967-68 and 1968-69 have been referred for the opinion of this court : Assessment year 1967-68 : " Whether, on the facts and in the circumstances of the case, the Income-tax Appellate Tribunal was correct in law in holding that the provisions of section 40A(5) do not apply too the cash allowance paid by the employer to the employees for meeting ....

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....? " This court in CIT v. Shriram Refrigeration Industries Ltd. [1992] 197 ITR 431, has held that cash payment made by the assessee to an employee by way of car allowance or house rent allowance may not be regarded as "perquisite" but can well be regarded as payment of salary as given in section 17 of the Income-tax Act and can, therefore, be taken into account for calculating the excess amount ....

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....h was paid by way of penalty for a breach of law, even though it might involve no personal liability, could be said to be an amount wholly and exclusively laid out for the purpose of the business of the assessee within the meaning of section 10(2)(xv) of the Indian Income-tax Act, 1922, and the fine paid by the assessee was not an allowable deduction under that section. The position is the same in....