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section 2(24(iv) of the IT Act 1961

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ncvijaykumar (Querist)
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15 July 2010 A director received a property from a company under a family settlement as per the award of the arbitrator under the Arbitration and conciliation Act 1996. Whether such property be treated as a "Benefit or Perquisite" under section 2(24)(iv) of the Income Tax Act 1961? is there any case law in support of the assessee that it is not taxable under the above section?

Bhaskaran Chackrapani Warrier

Bhaskaran Chackrapani Warrier (Expert)
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16 July 2010 Personal family needs should be considered as benefit/perquisites under section 2(24)(iv) and the value should be arrived at the figure the director would have been spent otherwise, having regard to his/her family needs.

Benefit may be in capital nature also so as to attract the said section.
Citation:- CIT Vs. S.Varadarajan (1996) 89 Taxman 457(Mad).

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