2023 (5) TMI 1105 - AT - Income Tax

Rectification of mistake u/s 154 - salary income - denying the HRA Exemption claimed u/s 10(13) - taxing the perquisites value twice - HELD THAT:- On going through the Paper Book filed by the assessee in Form 16 in which the value of perquisite u/s 17(2) has been added into the income of the assessee whereas it has been twice considered by the CPC which is wrong. Therefore, the addition is to be deleted.

In Form 16, the employer has also given exemption u/s 10(13A) for HRA and employer has also granted deduction under Chapter VI A out of which part is breakup of LIC premium, unit linked insurance plan, housing loan principal repayment and employee PF has also been allowed under section 80C.

Without rejecting the Form No. 16 by the revenue authorities they are bound to accept the income/exemption/deductions and other contents therein shown in the Form No. 16 issued by the employer. Section 192 has cast duty upon the employer for deducting tax on the estimated income of employees at per the rate in force for the particular financial year and the employer has to issue Form No. 16 as per Rule 31(1)(a). Appeal of the assessee allowed.