TMI Blog1982 (9) TMI 53X X X X Extracts X X X X X X X X Extracts X X X X ..... ibunal was right in law in holding that the ITO, SC (TDS), Bhopal, had jurisdiction over the assessee company u/s. 201 of the I.T. Act, 1961 ? (2) Whether, on the facts and in the circumstances of the case, the ITO, SC(TDS), Bhopal, had the powers to adjudicate and determine the correctness of the estimated chargeable income of each employee for whom the return was filed u/s. 206 of the Act ? (3) Whether, on the facts and in the circumstances of the case, the Tribunal was justified in upholding the order of the ITO, SC(TDS), Bhopal, giving direction to charge interest u/s. 201(1A) of the I.T. Act, 1961, on the basis of recomputation of the chargeable income of each employee made by him after the receipt of the return u/s. 206 of the I.T ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tion of leave travel concession and reduction of the standard deduction to Rs. 1,000 on the ground that the employees were in receipt of conveyance allowance. The ITO, Salaries Circle (TDS), Bhopal, therefore, recomputed the chargeable income in the case of each employee and by his separate orders under s. 201 of the Act, demanded extra tax as well as interest under s. 201 (1A) of the Act from the assessee. Aggrieved by that order, the assessee preferred an appeal before the Commissioner (Appeals), and contended that the ITO, Salaries Circle (TDS), Bhopal, had no jurisdiction in the matter. This contention was upheld by the Commissioner, who held that the orders passed by the ITO, Salaries Circle (TDS), Bhopal, under s. 201 of the Act were ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... demand can be made under s. 201 of the Act, the Tribunal upheld that finding with some modifications. The Tribunal further held that interest under s. 201(1A) of the Act was correctly leviable in the circumstances of the case. The appeals filed by the assessee and the Department were disposed of accordingly. Aggrieved by the order passed by the Tribunal, the assessee and the Department both sought a reference. The applications for reference submitted by the assessee and the Department were allowed by the Tribunal and that is how the aforesaid questions of law have been referred to this court for its opinion. As regards the question referred to in Misc. Civil Case No. 262 of 1980, learned counsel for the parties conceded that the matter w ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... that financial year." A perusal of the aforesaid provision would make it clear that the liability of the employer is to deduct tax on the estimated income of the employee. Section 200 of the Act further casts a duty on the employer to pay within the prescribed time, the sum so deducted to the credit of the Central Govt. or as the Board directs. In the instant case, the employer had deducted and paid tax on the amount of salary income of its employees by estimate. The ITO has not found that the estimate by the employer was not fair or honest. The Commissioner (Appeals), while dealing with this matter, found that the estimate made by the employer was bona fide. The Tribunal has not reversed that finding. The Tribunal has merely held that ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... in the statement of the case, that the ITO (TDS), made some controversial additions, such as valuation of perquisites relating to accommodation and furniture. The ITO disallowed the claim for exemption of leave travel concession and reduced the standard deduction to Rs. 1,000 on the ground that the employee was in receipt of conveyance allowance. That the estimate made by the employer was not honest and fair has not been found by the ITO or by the Tribunal. In point of fact, the finding of the Commissioner (Appeals) that the estimate was bona fide has not been set aside by the Tribunal. The employer deducted tax from the salary of the employees on the salary income honestly estimated by it and has also paid that tax, as required by s. 200 o ..... X X X X Extracts X X X X X X X X Extracts X X X X
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