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2013 (4) TMI 312 - AT - Income TaxTax paid by the employer on the salary/remuneration of the employee - whether covered under section 17(2) although a monetary perquisite as held by CIT(A) - whether eligible for exemption u/s 10 (10CC) - assessee filed return of income of the above persons as an authorized agent u/s 163 - Held that:- As decided in Director, Income Tax (International Taxation) Versus Sedco Forex International Drilling Inc & Others [2012 (8) TMI 426 - UTTARKHAND HIGH COURT] & bunch of cases despite prohibition contemplated in the Section 200 of Companies Act for payment of tax free remuneration to an employee, Section 10(10CC) of the Income Tax Act provides for exemption of amount which is not a monetary payment to employee and is also provided as perquisite u/s 17(2) and thereby has acknowledged that remuneration plus tax payable thereon is permissible. Therefore, the payment of tax on account of salaries of the employees not by way of monetary payment to the employees concerned, but for or on their account to the Department and the same being one of the perquisites included in Section 17(2), such payment was to be excluded from the income of the employees - Decided in favour of assessee.
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