T.D Sugla, J.:— In this reference at the instance of the assessee, the Income-tax Appellate Tribunal has referred to this court the following two questions of law under section 256(1) of the Income-tax Act, 1961
“1. Whether, on the facts and in the circumstances of the case, for the purposes of considering disallowances under section 40A(5), the house rent allowance, rent assistance and car allowance all being cash allowances paid monthly under the terms of service agreements are perquisites?
2. Whether, on the facts and in the circumstances of the case, the sum of Rs. 28,334 should be disallowed under section 40A(5) of the Income-tax Act?”
2. The assessment year involved is 1972-73. Counsel are agreed that, in view of our court's decision in the case of Commissioner Of Income-Tax, Bombay City-Ii v. Indokem Private Ltd., [1981] 132 ITR 125, both the questions are to be answered in the negative and in favour of the assessee.
3. The questions are so answered. No order as to costs.