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2013 (11) TMI 220 - GUJARAT HIGH COURTTDS u/s 192 - inclusion of certain prerequisite and allowances in Salary - Exemption u/s 10(14) - Non deduction of TDS on uniform allowance and conveyance maintenance reimbursement expenditure (hereinafter referred to as "the CMRE") - Non deduction of TDS on the scheme named "holiday homes" floated for the benefit of employees - Assessee in default under section 201(1)/201(1A) - Held that:- eventually for any shortcoming of employees, the employer cannot be found fault with. As this question concerns the respondent to a limited extent as to whether tax was to be deducted at source for being taxable receipts and the issue since is squarely covered by the decision of this court in the assessee's own case, the present tax appeals on this issue deserve no consideration - Following the decision in [1998 (11) TMI 3 - GUJARAT High Court] decided in favor of assessee. Regarding holiday home scheme - Held that:- as far as the assessment years 2006-07 and 2007-08 are concerned, the expenditure incurred by the employer for holidays enjoyed by the employees was not prescribed as fringe benefit for the purpose of section 17(2)(iv) of the Act and the same was not taxed as perquisite in the employees' hands and wherever not actual and fully utilised, the same would constitute taxable salary. However, for the assessment years 2008-09 and 2009-10, the 'holiday home scheme' could not be considered as perquisite under section 17(2)(iv) of the Act in the hands of the employees, was held rightly acceptable. This was essentially on account of the introduction of rule 3(7)(ii) of the Income-tax (Fourteenth Amendment) Rules, 2007, with effect from April 1, 2008, in respect of those employers who were not liable to pay FBT under Chapter XII-H of the Act. Payment in question towards the 'holiday home scheme' if not utilised actually, the same can be held to be taxable salary of the employees. In these appeals, concerned essentially is the taxable receipts and not the payment of tax by the employer. Moreover, till the FBT regime was in existence, the respondent-assessee has already paid the FBT under section 115WB of the Act. Therefore, rightly no default was considered on the part of the respondent-assessee under section 201(1) of the Act – Decided against the Revenue.
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