Perquisites - motor car

Please answer to the following questions, 

1. Can a director (and an  employee) buy a new car and lease that to company for his office and private use and charge reasonable lease rent (to cover deprecation, Insurance and car loan interest) to company? Director include hire/lease income in his tax return and claim Deprecation, insurance and loan interest against it.

2. Is above arrangement permissible under the Income Tax Act?

3. If the answer to above is yes (as the car is hired by the company from director and also he is the owner), to value the perquisite under Income Tax Act, which of the following category this case fit-    

1. car owned or hired by the employer OR (whether car need to be hired/leased from third party, other than employee to fit into this category?)
2. owned by the employee

is it a) or b) above? If it is treated as car owned by the employee (b), then the perquisite should be actual amount of expenses incurred by the employer minus Rs. 1,800 per month. Should actual expenses include the lease rent paid by the employer to director.

thanks in advance.