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Perquisite in kind — whether taxable?

The reader is a Chartered Accountant in practice.

A trip to Singapore, Malaysia and Sri Lanka for himself and his family was sponsored by one of his clients with the assignment of participating in a dealer's meet on his behalf and report to him about the prospect for marketing his products.

The assessing officer has treated the entire cost purportedly under Sec. 28(iv) as his income.

Since the trip on his part was promoting his business, the understanding of the assessing officer that there is no immediate quid pro quo as a result of the expenditure does not appear to be justified.

He seeks clarification.

A trip undertaken as a service to a client cannot be a perquisite. But then, the cost of journey for the family and possible element of expenditure not related to reader's profession may well be taken as a reward for such service, so that treatment of reasonable part of such expenses as professional receipt cannot possibly be resisted.

S. RAJARATNAM

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