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2011 (6) TMI 340 - HC - Income TaxRectification of mistake - whether the tax paid by the employer in respect of salary paid to the employees is “salary” under Rule 3 of the Income Tax Rules for the purpose of computing the value of perquisites in respect of rent free accommodation provided to the expatriate employees - Held that:- The definition of the term “salary” in Rule 3 before 1.4.2001 makes it amply clear that there is no scope to exclude the tax from “salary” because it is pay and it is not specifically excluded by any of the exclusionary clauses mentioned therein - This becomes more clear when a conscious decision was made to amend the rule and a clause (d) was introduced for the purpose of excluding the value of perquisites specified in clause (2) of Section 17 - There is only one interpretation which can be placed on the term and the same is clear from its definition in Rule 3 as it existed for the relevant years - Therefore, the mistake was apparent from record and flows from the plain reading of Rule 3, Explanation - Therefore, of the opinion that it was a legal error apparent on record which could be corrected by the AO in exercise of his power under Section 154 of the Act - Accordingly, questions of law framed are answered in favour of the Revenue.
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