1. This is a reference at the instance of the Commissioner of Income-tax, Ernakulam. The following question of law has been referred for our determination, namely:

"Whether, on the facts and in the circumstances of the case, the Tribunal was justified in holding that the expenses on the maintenance of the buildings owned by the company and given rent-free to the employees cannot be considered for the purpose of disallowance under S.40 (a) (v) of the I.T. Act, 1961?"

The assessee is a limited Company running a tea estate. To six of its employees the assessee provided rent-free accommodation. The buildings thus provided are owned by the assessee. The assessee also incurred certain expenses on the maintenance and upkeep of those buildings. These have been exhibited in the form of a chart in the statement of the case, as follows:

Educa- Value of Upkeep

tion Rent of

Allow free build Total

ings

ance accom-

iodation con

sidered

for per

sonal in

come-tax

purposes.

Rs. Rs. Rs. Rs.

Mr. G. B. Shuttle worth 14480 1960 5028 21468

Mr. H. D. Dhunjoobhoy 1960 4957 6917

Mr. George Joseph 1960 4821 6781

Mr. P.O. Machiah 1960 5159 7119

Mr. R P. Boson 1470 3921 5391

Mr. K. Jayakumar 1092 4747 5839"

The Inc