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2014 (11) TMI 478 - ITAT LUCKNOWTDS on salary u/s 192 – Supply of electricity covered u/s 17(2)(iii) as perquisite or not - rebate in supply of electricity - Held that:- Assessee-company is a Government Public Limited Company and subsidiary of holding company, U.P. Power Corporation Limited and also engaged in distribution of power to its consumers like government, Semi-Government and private bodies - the rates for supply of electricity including departmental employees are fixed and decided by the UPERC and such rates are binding on all the consumers as well as distribution companies - As per LMV-10, the UPERC has fixed the rates of charges for metered and un-metered supply to the departmental employees and pensioners - the rates of charges for supply of electricity to departmental employees and pensioners are lesser than the ordinary consumers. Where the assessee-company has no control in granting rebate to its employees in consumption of electricity, the rebate given to the employees cannot be called to be perquisite in the hands of the employees and the assessee-company cannot be held responsible for deduction of TDS on the perquisite availed by the employees - In Commissioner of Income-Tax And Another Versus Chief Officer, State Bank of India [2005 (12) TMI 68 - UTTARANCHAL High Court] it has been held that no perquisite value could be added in the hands of the assessee - no interest would be charged u/s 201/201(1A) of the Act from the assessee on account of lesser deduction of tax - whatever rates of electricity charges are fixed, they were fixed by the UPERC and the assessee has no control thereon - The reasons for charging lesser rate of electricity were also explained - the assessee cannot be held to be in default for non-deduction of TDS on the value of perquisites as alleged to be availed by the employees on account of lesser rate of electricity charges – thus, the order of the CIT(A) is upheld - Decided against revenue.
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