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2017 (3) TMI 24 - AT - Income TaxIncome U/s 2(24) - Addition of medical insurance receipt - reimbursement of expenses incurred in relation to a surgery of gall bladder - Held that:- Section 2(24) of the I.T. Act defines the term “Income” in an inclusive way, but reimbursement of expenses cannot be income because the assessee is getting the money back, which he already spent. Assessee did not earn this money at all which he is getting as reimbursement. Reimbursement does not mean that the assessee is deriving any income from any sale of goods and services. There is no motive to earn income out of medical insurance. After going through the definition of the income, as explained above, one can say easily that the “reimbursement” is not an income. The term “reimbursement” does not fall in the characteristics of income. No doubt the definition of ‘income’ is inclusive. This, of course, does not mean that an amount which can, by no stretch of imagination, be called income can be treated as income and taxed as such by parliament. It must have some characteristics of income as broadly understood. - Decided in favour of assessee
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