Taylor Instrument Co. (I) Ltd. vs Commissioner of Income Tax

The following two questions of law have been referred for our opinion u/s 256(1) of the income tax Act, 1961:- 1. Whether on the facts and circumstances of the case, Tribunal was right in holding that perquisite value of rent free accommodation provided to the employees of the assessee company should be valued on actual u/s 40A(5) and not u/s 17 read with Rule 3 of the income tax Rules, 1962?

Whether on the facts and circumstances of the case, Surtax liability for assessment year 1979-80 under the Companies (Profits) Surtax Act, 1964 is allowable in the computation of total income of the assessee?

The admitted position is that in view of the decision of this Court in respect of the same assessee in ITR 538-39/1983 decided on 11-8-2005 the first question is required to be answered in the affirmative, in favour of the revenue and against the assessee. 2. Insofar as the second question is concerned, the admitted position is that in view of the decision of the Supreme Court in Smith Kline and French (India) Ltd. and Others Vs. Commissioner of Income Tax, the question is required to be answered in the negative, in favour of the revenue and against the assessee. The reference is disposed of accordingly.