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2012 (11) TMI 887 - SUPREME COURTValuation of Perquisites - method of fixation of the value of 'perquisites' under Section 17(2) - Rule 3 of the Income Tax Rules, 1962 - TDS u/s 192 - 10% of the salary of employees of the ONGC in cities having population exceeding four lakhs as per 1991 census was not included in the 'salary' by the employees for the purpose of computing the tax that is deductible from the income of the employees for making payment to the Income Tax Department. - assessee in default. The interim order of the High Court passed on 20th February, 1996 in the writ petition, the ONGC was prevented to deduct the tax on 10% of the salary and to pay the same to the Central Government. In the interim order dated 20th February, 1996, the High Court had not held that the ONGC was not liable to deduct the tax under Section 192(1) of the Act. Thus, when the writ petition was dismissed on 15th March, 2010 by the High Court, the interim order passed by the High Court on 20th February, 1996 had to be vacated and the parties were required to be put back in the same position as they would have been before the interim order was passed by the High Court on 20th February, 1996 in accordance with provisions of Section 144 of the Code of Civil Procedure. Hence, during the period from 20th February, 1996 to 15th March, 2010, the ONGC cannot be deemed to be an assessee in default under the provisions of the Act. Consequently, the provisions of sub-section (1A) of Section 201 of the Act for payment of interest by an assessee in default under the provisions of the Act will not be applicable to the payments not made by the ONGC because of the interim order passed by the High Court which was in force from 20th February, 1996 to 15th March, 2010. The respondent shall grant to the ONGC time upto 28th February, 2013 to make the payment of the tax on 10% of the salary and interest calculated with effect from 16th November, 2010. - Decided in favor of assessee.
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