TMI Blog1989 (10) TMI 39X X X X Extracts X X X X X X X X Extracts X X X X ..... the assessment year 1972-73 for which the previous year ended on March 31, 1972. The questions read thus : " 1. Whether, on the facts and in the circumstances of the case, the Tribunal was right in holding that roads within the factory premises constituted 'plant' to be entitled to depreciation allowance ? 2. Whether, on the facts and in the circumstances of the case, the Tribunal was right i ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e Income-tax Officer observed that what the assessee intended to do was to purchase annuity policies upon the lives of its directors instead of paying them commission. He held that the said sum was paid by the assessee on behalf of the directors and was in the nature of a commission. He took the said sum into account as being salary. The Appellate Assistant Commissioner allowed the assessee's appe ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e termination of their service. Dr. Balasubramanian, learned counsel for the Revenue, drew our attention to the definition of "perquisite" appearing in section 40A(5), Explanation 2(b)(iv), namely, "payment by the assessee of any sum in respect of any obligation which, but for such payment, would have been payable by the employee". He submitted that in making payments upon the annuity policies t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... vested right on the part of the employee to claim ; it could not apply to contingent payments to which the employee had no right until the contingency occurred. The employer's contribution towards the premia were not perquisites allowed to the employee by the employer or amounts due to him from the employer. This judgment squarely applies to the case before us. It has been held by the Tribunal, ..... X X X X Extracts X X X X X X X X Extracts X X X X
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