1991 (8) TMI 8 - SC - Income Tax

Section 40(a)(v) - respondent assessee-company paid seven of its employees in addition to what was described as their salary certain amounts of bonus commission and house rent allowance - whether such amount could be treated as perquisites - Section 40(a)(v) has since been replaced by another section 40A(5) which has also been substituted in 1989 - matter is covered by a circular of the Board dated March 4 1972 - reference rejected

Summary

The Supreme Court dismissed the appeal regarding the disallowance of certain payments to employees by an assessee-company under the Income-tax Act, 1961. The Tribunal's decision was upheld, stating that the matter was covered by a circular of the Central Board, and no useful purpose would be served by directing a reference to the High Court. The appellant was directed to bear the respondent's costs of the appeal.