9911796707
TMI Blog1972 (2) TMI 22X X X X Extracts X X X X X X X X Extracts X X X X ..... 56, that company passed a resolution that the assessee should be allowed free furnished residential accommodation in its house known as J. K. House, at 12, Alipur Road, Calcutta. The assessee was not to receive any other remuneration. While making the assessment under the Expenditure-tax Act, for the two years in question, the Expenditure-tax Officer included in the total expenditure of the assessee the following two items amongst others. 1. Rs. 19,440, being the annual letting value of rent-free residence provided to the assessee by the J. K. Jute Mills Company Ltd. 2. Rs. 5,800, being taxes, insurance and other miscellaneous expenses in respect of the aforesaid residential accommodation. The assessee disputed these two items and the ma ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the assessee, yet may under the provisions of the Act be required to be included in his expenditure. That kind of indirect expenditure is to be found in section 4. Clause (i) of section 4 reads : " Unless otherwise provided in section 5, the following amounts shall be included in computing the expenditure of an assessee liable to tax under this Act, namely:- (i) any expenditure incurred, whether directly or indirectly by any person other than the assessee in respect of any obligation or personal requirement of the assessee or any of his dependents to the extent to which the amount of all such expenditure in the aggregate exceeds Rs. 5,000 in any year. " It is under this provision that the two items in dispute are sought to be included i ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... house at Calcutta could not be treated as an item of expenditure. The same is the position with regard to the other item of Rs. 5,800. That item is comprised of the insurance premium and the taxes in respect of the Calcutta house. The company has to pay taxes and insurance in respect of the house whether or not somebody lives in it. It pays such charges in its capacity as the owner of the house. By no stretch of imagination can it be said that the company is paying premium and insurance charges for the house for and on behalf of the assessee or for his benefit. We accordingly answer the question in the affirmative in favour of the assessee and against the department. The Commissioner of Expenditure-tax shall pay to the assessee the costs ..... X X X X Extracts X X X X X X X X Extracts X X X X
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