1989 (3) TMI 38

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..... of law to this court under section 256(2) of the Income-tax Act, 1961 ("the Act") "Whether, on the facts and in the circumstances of the case, the Tribunal was right in holding that the expenses incurred by the assessee for the maintenance of bungalows taken on rent for the use by the employees for their residence did not result in the provision of any benefit or amenity or perquisite to such emp .....

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..... issioner directed the Income-tax Officer to recompute the disallowance under section 40(c)(iii) without taking into account the bungalow and maintenance expenses for the purpose. On appeal, the Tribunal held that the direction given by the Appellate Assistant Commissioner was correct. After considering the contentions of both the parties, the Tribunal held as follows : "We, however, find no forc .....

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..... sistant Commissioner in respect of the two years under consideration to recompute the disallowance under section 40(c)(iii) after excluding the bungalow maintenance expenses, is well founded. Admittedly, the bungalows are not owned by the assesseecompany but have been taken on rent and expenditure on such rented bungalows is incurred by the assessee for their maintenance. In the circumstances, no .....

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