Law:

Section:

Section 195A of the Income-tax Act, 1961 - Deduction of tax at source - Income payable net of tax - Assessee received salary in Indian currency as well as in foreign currency from his employer - Tax in sum of Rs. 1,68,104 was also paid by his employer - While framing assessment Assessing Officer added aforesaid amount of Rs. 1,68,104 treating it to be a monetary perk - In this manner, figure of gross total income was arrived at Rs. 51,56,849 and after giving standard deduction of Rs. 20,000 total income was arrived at Rs. 51,36,849 - On this, tax was calculated at Rs. 15,15,055 - After doing this exercise, Assessing Officer also grossed up tax liability to Rs. 22,61,276 applying provisions of section 195A - On appeal, assessee contended that grossing up could not have been done, since advance tax was paid by assessee himself - Recording finding that assessee had paid advance tax of Rs. 12,50,686, addition on account of grossing up was deleted and Commissioner (Appeals) also deleted addition of Rs. 1,68,104 holding that this was a non-monetary perk - On further appeal, Tribunal upheld order of Commissioner (Appeals) - Whether since finding of fact was arrived at that advance tax had been paid by employee and not by employer, in such circumstances basis for this grossing up by Assessing Officer was clearly unsustainable - Held, yes - Whether in such circumstances, no question of law arose, insofar as grossing up was concerned - Held, yes CASE REFERRED TO RBF Rig Corpn. LIC (RBFCR) v. Asstt. CIT [2007] 109 ITD 141 (Delhi) (SB) [Para 4]. Ms. P.L. Bansal for the Appellant. Dr. Rakesh Gupta, Ms. Aarti Saini and Ms. Mahima Agarwalfor the Respondent. JUDGMENT A.K. Sikri, J. - The assessee herein was an employee of M/s. Hongo India (P.) Ltd. He was paid salary in Indian currency as well as in foreign currency. Tax in the sum of Rs. 1,68,104 was also paid by his employer. 2. While framing the assessment the Assessing Officer (AO) added the aforesaid amount of Rs. 1,68,104 treating it to be a monetary perk. In this manner, the figure of gross total income was arrived at Rs. 51,56,849 and after giving standard deduction of Rs. 20,000 the total income was arrived at Rs.…

Deprecated: trim(): Passing null to parameter #1 ($string) of type string is deprecated in /home/digixyei/sldsystempk.com/view/master-layout/view_case.php on line 492