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2017 (12) TMI 1066 - HC - Income TaxApplicability of provisions of section 195A - Petitioners as employees deputed by the Consultant, returned their income received in India and showed the tax component paid by the KSEB as “income from other sources” - Held that:- In the present case the assesses were in India for employment in a project, as deputed by the Consultant. The assesses were, hence, in the employment of the KSEB and as per the consultancy agreement the salary was payable by the Consultant and the income-tax by the KSEB. Obviously, the salary of the employees deputed by the Consultant was included in the consultancy charges and the salary and income-tax were both from the KSEB, in whose project the assesses were employed. C.W. Steel (1971 (8) TMI 68 - KERALA High Court) is more on point, in interpreting the definition of 'salary' in the Act, then, which inter alia included perquisites; which, by an Explanation, included any payment made by the employer in satisfaction of an obligation of the employee; which, but for the payment, would have been payable by the employee. Section 195A brings in the same effect, the absence of which prompted the Hon'ble Supreme Court in Emil Webber [1993 (2) TMI 1 - SUPREME Court ]to direct treatment of the tax payment as “income from other sources”. Question of law raised to be answered in favour of the revenue and against the assessee on a different reasoning than that given by the Tribunal. We are told that in many of the assessment orders the computation has not been properly made. The Assessing Officer would, hence, employ Section 195A and compute the amounts properly within a period of two months from the date of receipt of the certified copy of this judgment. The assessees are said to have paid up the amounts already. Only if there is a balance due, the same would have to be satisfied by the assessee or its agent.
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