TMI Blog2008 (8) TMI 456X X X X Extracts X X X X X X X X Extracts X X X X ..... e crushed, jaws broken and profoundly bleeding. In such critical condition, the assessee was rushed to the nearest hospital available where the best treatment could be administered for saving the life of the assessee and to reduce the impact of the accident. Eventually, the employer reimbursed Rs. 1,53,618 being the expense incurred by the assessee for treatment. Learned AO found it to be taxable as it amounts to be perquisites in the hands of the assessee. The learned Authorised Representative pleaded that the reimbursement of medical expense due to the accident is purely a contingent event and in the light of the case CIT vs. L.W. Russel (1964) 53 ITR 91 (SC), the provisions of the Act under the head "Perquisites" shall not be attracted i ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rded his findings as under: "I have gone through the grounds raised by the appellant and seen the situation of the case of the appellant has met with an accident in the working place and treated in a hospital which is not approved by the Chief CIT or the CGHS authorities. Therefore, AO has no option but to treat the amount of medical reimbursement made by the employer of Rs. 1,53,618 as part of the salary. On the other hand, as stated by the appellant. Dr. Kalamdani's hospital is the best orthopaedic hospital and the treatment is taken due to the urgent nature of the accident. Therefore, claims to allow the same as medical reimbursement and not to tax as a perquisite as treated by the AO. After appreciating the situation that due to urgen ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he employer has performed his duty by admitting his employee in the nearest best available hospital and reimbursed the medical expenses. The obligation is on the part of the employer to meet such expense. Further, if the employer had not acted so, other than legal consequence, the morale of his entire employees will be demoralized, and may result in shutdown of the factory. As assumed by the learned AO, the employee i.e., the assessee, has not obtained any benefit by this transaction. The entire, episode has resulted in loss of his limbs, pain and agony, and uncertain future for his entire family. The amount received by the employee was neither a benefit nor an obligation met by the employer on behalf of the employee as envisaged in the Act ..... X X X X Extracts X X X X X X X X Extracts X X X X
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