JUDGMENT

A.K. Sikri, J.

1. There is one question which is common in all these appeals. However, in ITR 458/1984 there are some additional questions which are referred for opinion. We would like to deal with these questions first and then approach the common question of law centre to all these cases. This ITR pertains to assessment year 1978-79 wherein the assessee had claimed certain medical expenses which were reimbursed to its employees. The Tribunal accepted the claim of the assessee that such reimbursement could not be regarded as perks. Following question has been referred by the Tribunal for our opinion in this behalf:

"Whether on the facts and in the circumstances of the case, the Tribunal was right in holding that reimbursement of medical expenses by the assessee company to its employees could not be treated as perquisites within the meaning of Section 40C/40A (5) of the Income-Tax Act, 1961?"

2. This question stands answered in favour of the assessee and against the Revenue in the case of Commissioner of Income Tax Vs. Mafatlal Gangabhai and Co. (P) Ltd., 219 ITR 644.

3. Another question which is referred by the Tribunal on the application of the assessee relates to