TMI Blog1981 (2) TMI 108X X X X Extracts X X X X X X X X Extracts X X X X ..... parties are also common. 3. The relevant facts, in brief, are that the assessee is a Company. It filed the returns of income for the accounting periods ended on 31st March, 1976 and 31st March, 1977; relevant for the asst. yr. 1976-77 and 1977-78 and thereby made claims, inter alia the claim in respect of motor car expenses and depreciation thereto on cars for both the years under consideration. The ITO disallowed the claim of the assessee at 1/4th amounting to Rs. 3,755 and Rs. 3,015 respectively for the years under consideration on the ground of personal use of the cars by the Directors, on following the past record of the case. 4. The assessee went in appeals before the CIT (A), and thereby contended that the disallowances made on ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the issue are justified. He relies on the orders of the CIT (A). 6. We have heard the rival contentions and gone through the record before us. From the record, it is clear to us that the issue involved in these appeals was there before the Tribunal Ahmedabad Bench 'A' in ITA Nos. 880, 881 and 882/78-79 dt. 24th Dec., 1979 in the case of M/s. ABC (India) Ltd. vs. ITO Ward—A (Companies). Jamnagar for the asst. yrs. 1973-74 to 1975-76, where the Tribunal held that there was nothing personal in the case of the Company if the Directors use the Company's vehicle as the same is for the business of the company and that there is no application of s. 40 or 40A of the IT Act, 1961. Similarly, Bombay Bench 'D' of the Tribunal in ITA No. 1365/Bom/1 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... adras High Court in the case CIT vs. A.R. Adaikappa Chettiar Anr. held as under: "In order to attract s. 2(6C) (iii) of the Indian IT Act, 1922 the benefit or perquisite obtained should be by some sort of arrangement with the Company. The words "benefit" or 'perquisite obtained" from a Company would take in only such benefit or perquisite which the company had agreed to provide and which the person concerned could claim as of right based on such agreement. A mere advantage derived from the company without its authority or knowledge will not amount to a "benefit or perquisite obtained". The word "Obtained" occurring in the said section must be agreement oriented and cannot merely mean "taken". Therefore, following our own decision an ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
