( 1 ) THE question raised in this reference made by the Income-tax Appellate Tribunal (Delhi Bench A) under Section 66 (1) of the Indian Income-tax Act, 1922, is not only interesting but important for its decision may have an effect on numerous policies of personal accident insurance taken by the employers for protecting themselves against the demands for payment of compensation to their employees. Several decisions were cited before us by counsel for the parties, but none of them had a direct bearing on the question. In a way therefore, it may be said, that the question is res Integra and its decision turns on the meaning of the word "perquisite" as used in Section 7 of the Indian Income-tax Act, 1922 which will hereafter be referred to as the Act.

( 2 ) THE question has arisen in connection with the assessment of the respondent who will hereafter be referred to as the assessee in respect of the assessment years 1959-60, 1960-61, 1961-62 and relates to his income under the head salary. The relevant previous years ended on 31-3-1959, 31-3-1960 and 31-3-1961 respectively.

( 3 ) THE respondent Lala Shri Dhar was a director of Madan Mohan Lal Sri Ram and Company (P)