Home Case Index All Cases Income Tax Income Tax + HC Income Tax - 2011 (2) TMI HC This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2011 (2) TMI 210 - HC - Income TaxReimbursement of medical expenses - Perquisits withing the meaning of section 40C / 40A(5) - concerns the treatment which is to be given to the surplus amount at the hands of the assessee which the assessee collected from its customers on account of insurance premium and remained unclaimed because the persons who had paid the excess amount did not come forward to receive the same - the modus operandi of the assessee in dealing with such transactions by arguing that the insurance amount payable to the assessee by the hirer is not a statutory but a contractual obligation - The principal of law which is clearly discernable and is distilled from the aforesaid judgment is that though normally initial character of the receipt would govern the treatment which is to be meted out to a particular sum received by the assessee - the prime obligation was that the hirer to get the vehicle insured but the assessee took up this job upto itself, wherever hirer agreed, to sub-serve its own interest as the assessee wanted the vehicle to remain insured - if the limitation had expired, that would not extinguish the liability but only the remedy - Decided against the assessee
|