TMI Blog1988 (10) TMI 30X X X X Extracts X X X X X X X X Extracts X X X X ..... ribunal, Bombay Bench "D", has referred to us the following two questions for our consideration : "(1) Whether, on the facts and in the circumstances of the case, the Tribunal was justified in holding that the cash payments made by the assessee-company to its employees in the form of car allowance, ex gratia payments, insurance premium, house rent allowance, etc., are not covered by the expressi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ypewriter ribbons, etc. The dispute related to the disallowance under section 40(c)(iii) of the Income-tax Act, 1961, as it was in force in the relevant years. The statutory provisions have been extracted in paragraph 2 of the statement of case and need not be repeated here. In the assessment for the year 1967-68, the Income-tax Officer disallowed Rs. 13,689 being part of payments made to six empl ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... agraphs 5 and 6 of the statement of case. It would be sufficient for our purposes to observe that on both the points canvassed by the Departmental representative, the Tribunal found in favour of the assessee. Aggrieved by the said decision of the Tribunal, reference was sought for and made. As far as question No. (1) is concerned, Shri Jetley, for the Revenue, has very fairly stated that it is c ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... hat the parties understood all these payments as coming within the scope of salary to the employee. We would, therefore, confirm his direction in this regard also." In our opinion, the Tribunal has adopted a proper and reasonable approach and there is no warrant for considering "salary" in a restricted or unrealistic manner. All these were payments or rewards given to the employees for work done ..... X X X X Extracts X X X X X X X X Extracts X X X X
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