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

The following three 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 in the circumstances of the case, the Tribunal was right in holding that the perquisite value of rent free accommodation provided to the employees of the assessee-company, should be valued on actuals u/s 40A(5) and not the processed value under Rule 3 of the income tax Rule, 1962

Whether on the facts and in the circumstances of the case, the Tribunal was right in holding that the liabilities in respect of unpaid bills, unpaid bonus and unpaid other liabilities written back in the income of the assessee u/s 41(1)? 2. Whether on the facts and in the circumstances of the case, the Surtax liabilities for assessment year 1980-81, 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.

Insofar as the second question is concerned, learned counsel for the assessee does not pres it and, therefore, this question is returned unanswered. Insofar as the third 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.