Bombay H.C : The medical expenses reimbursed by the assessee to four of its employees should not be taken into account as ‘perquisites’ for the purpose of s. 40(a)(v)

Counsel Appeared

Jetly, Mrs. M. Singh & K.C. Sidhwa, for the Revenue : Miss Shobha Chhabria i/b T. Pooran & Co., for the Assessee

D. SUGLA, J. :

The only question of law raised in this reference at the instance of the Department is :

“Whether, on the facts and in the circumstances of the case and in law, the Tribunal was right in holding that the medical expenses reimbursed by the assessee to four of its employees should not be taken into account as ‘perquisites’ for the purpose of s. 40(a)(v) of the IT Act, 1961 ?”

2. Counsel are agreed that in view of this Court’s decision in the case of CIT vs. Indokem (P) Ltd. (1981) 22 CTR (Bom) 268: (1981) 132 ITR 125(Bom), the question has to be answered in the affirmative and in favour of the assessee. The question is so answered. No order as to costs.

[Citation : 177 ITR 96]