1984 (3) TMI 120

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.... however, did not accept the assessee's argument, as according to him, the construction placed by the Tribunal on s. 40A (5) was very narrow and did not reflect the intention of the legislature. Further since the Department was in reference before the High Court on this issue, he did not follow the ITAT Special Bench decision in the case of Blackie & Sons (Ind) Ltd. 2. On an appeal by the assessee, however, the CIT (A) followed the decision in the case of Blacke & Song (Ind) Ltd. and directed the ITO to modify the disallowance under/s. 40A (5) without treating these items as perquisites. 3. The Revenue is, therefore, in appeal before the Tribunal on the ground that the CIT (A) erred in holding that case payment made by the assessee to i....

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.... the Scheme of the IT Act, "salary" cannot be treated as "perquisite", but perquisite had to be included in the computation of salary under 17 (1) (iv) of the IT Act. Finally, our attention is invited to the Tribunal Bombay Bench 'D' decision in the case of M/s Glaxo Laboratories (India) Ltd. vs. ITO. in ITA. No. 1999 (Bom)/1981 where the Tribunal has held that any cash payment to an employee cannot be treated as a perquisite. 4. We have carefully considered the facts and circumstances of the case and the arguments on either sides. The dispute before us lies within a very narrow compass. The question to be considered is whether the cash payment made by an employer to an employee for reimbursing the employee on the expenditure incurred by ....