2003 (8) TMI 8 - HC - Income Tax

Perquisite - Whether Tribunal was justified in upholding the Commissioner of Income-tax (Appeals) decision that conveyance allowance granted by the assessee to its employees was not a perquisite under section 17(2) and consequently directing the Assessing Officer to revise the demand created in respect of short payment of TDS and interest thereon? - Commissioner of Income-tax Jaipur has filed the instant application seeking direction to the Income-tax Appellate Tribunal to refer the aforesaid question for the opinion of this court - The conveyance allowance is in the nature of compensatory allowance and therefore is not a perquisite. no infirmity in tribunal s order - we decline to direct the Tribunal to refer the aforesaid question to this court appeal dismissed

Summary

The High Court of Rajasthan held that conveyance allowance paid to employees of the Rajasthan State Electricity Board is not a perquisite, so tax deduction at source was not required. The court dismissed the application seeking a reference on this matter.