TMI Blog1980 (6) TMI 26X X X X Extracts X X X X X X X X Extracts X X X X ..... or the assessment years 1968-69 to 1971-72, the ITO disallowed certain amounts in each year, representing leave allowance paid in cash to certain of its employees. The view of the ITO was that these payments would either amount to salary or benefit or perquisite within the meaning of s. 40(c)(iii) or the substituted s. 40(a)(v), as the case may be. This view was confirmed by the AAC. But, on furth ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 1 ?" For the assessment years 1969-70 to 71-72 : " Whether, on the facts and in the circumstances of the case, the Appellate Tribunal was right in law in holding that the leave allowance was not a perquisite and, therefore, the allowance of the same would not fall to be restricted in terms of section 40(a)(v) of the Income-tax Act, 1961 ?" The matter is not res integra. It has been decided b ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ployees in terms of service conditions cannot be treated as perquisites for the purpose of disallowance under s. 40(c)(iii) or s. 40(a)(v). The petitions filed under s. 256(1) before the Bombay High Court also were dismissed in the view that the expression" perquisite" would cover only non-cash benefits to the employees. It also appears that it was brought to the notice of the learned judges of th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... self. If it is money, the question of its value being taken into account or the benefit or perquisite being converted into money will not arise." Therefore, the view of this court also was that in order to term payment as perquisite, it shall be a payment, other than a cash payment, in pursuance of a contract of service. The learned counsel for the revenue did not bring to our notice any other d ..... X X X X Extracts X X X X X X X X Extracts X X X X
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