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2023 (2) TMI 411 - ITAT SURATIncome from salaries - Perquisite - Superannuation fund in excess - Adjustment on account of employer’s contribution towards approved superannuation fund - as submitted that such employer contribution towards approved superannuation fund could not be treated as “perquisites” so as to tax it under the head “income from salaries” - HELD THAT:- CPC while processing the return of assessee made adjustment (disallowance) of Rs. 85, 318/-, out of employer contribution for superannuation fund, which was in excess of Rs. 1.50 Lakhs. CIT(A) upheld the adjustment by taking view that a total sum of Rs. 2,35,318/-was an aggregate contribution to the assessees account for FY 2016-17 for contribution to approved superannuation fund. As per section 17(2)(vii) the amount of any contribution to an approved superannuation fund by the employer in respect of the employee, to the extent it exceeds Rs. 1,50,000/-, shall be treated ‘perquisite’ to be chargeable under head ‘salaries’. Before us assessee vehemently submitted that the amount contributed by the employer to the superannuation fund is not vested in the hand of employee till the event his superannuation or becoming incapable of services and unless right of the employee is vested in the said amount, it cannot be treated amount of perquisite. The submissions of assessee, though seems to be convincing but against the statutory provisions of section 17(2)(vii). None of the case laws relied by the ld AR for the assessee has considered the provisions of section 17(2)(vii). Therefore, no reason to interfere with the finding of the ld. CIT(A). Addition on account of conveyance maintenance reimbursement expenses (CMRE) - assessee submits that the assessee disallowed (offered) 20% of CMRE to tax and remaining amount was offered to tax - assessee restricted his claim to the extent of 80%, only which is spent and remaining was disallowed by assessee voluntarily - CPC while processing return disallowed the same - HELD THAT:- As assessee vehemently submitted that the assessee restricted the claim to the extent of actually spent and the XCPC taxed the entire claim without seeking any details, we find merit in the submissions of assessee that the disallowance was made without giving opportunity of explanation or seeking details of the actual expenditure. On considering the facts and the wage structure of assessee, we are convinced that the assessee has reasonably disallowed 20% of CMRE payment while filing return of income. Therefore, direct the assessing officer to delete the addition/ disallowance of CMRE.
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