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2016 (9) TMI 963 - GUJARAT HIGH COURTTDS u/s 192 - pro-rate medical allowances given by the Employer to the employees - whether is taxable as perquisite in their hands under the head “Salary” as per sub clause (iiia) and (iiib) of section 2(24) r.w.s. 17 ? - Held that:- Section 17(2) of the Act refers to term “perquisite” as to include range of benefits to be paid by the employer to the employees. Proviso to said sub section, however, provides that nothing in this clause shall apply to in clause (v) where any sum paid by the employer in respect of any expenditure actually incurred by the employee on his medical treatment or the treatment of any member of his family, so, however that such sum does not exceed ₹ 15,000/- in the previous year. Thus, reimbursement of medical expenditure actually incurred by the employee on himself or his family or upto a ceiling of ₹ 15,000/- would not be included in the term “perquisite”. This is precisely what are the facts in the present case. The Revenue does not contend that the ceiling of ₹ 15,000/- was breached. Prime objection of the Revenue appears to be the fixed reimbursement commensurate with the level of the employee irrespective of the demand for medical reimbursement. The company, however, when ensured that such reimbursement was not in excess of actual expenditure incurred by the employees, this objection of the Revenue also cannot survive. - Decided in favour of assessee
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