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2020 (1) TMI 990 - AT - Income TaxLevy of FBT on the provision of free electricity by the assessee to its’ employees - Assessment u/s 115WE(3) - assessee’s stand is that the same is a perquisite in the hands of the employees, forming part of their salary income and, therefore, excluded under FBT (s.115WB(3)) - assessee-employer deny its’ liability u/s. 4 r/w s. 192, as well as u/s. 115WA(1), i.e., qua a benefit to the employees, by raising a plea that the tax on former is payable by the employees, so that the tax gets collected or paid under neither - HELD THAT:- Only an acceptance of it’s liability to deduct and deposit income-tax on the perquisite to its’ employees and, rather, doing so, would operate to save the assessee of it’s liability to tax u/s.115WA(1). The facts of the case are admitted and borne out by the record, being admittedly the same as for AY 2006-07, as is the position of law for both the years. The assessee does not admittedly accept its’ liability to deduct and deposit tax at source on the said benefit. It is accordingly liable u/s. 115WA(1). We may also clarify that inasmuch as the assessee was not heard on said denial (toward TDS) on the provision of free/concessional electricity to its’ employees for their household consumption, we are not issuing any final finding in the matter. Our decision rests on the premise that the said denial would render it liable to FBT u/s. 115WA(1) inasmuch as it would effectively preclude it from raising the plea of the tax on the said benefit being payable by the employees. That is, it is not open for it to take a contrarian stand, as it apparently does inasmuch as it admits to neither – the tax liability on the benefit to its’ employees and, consequently, to deduction of tax at source and the consequential liability u/s. 201(1)/201(1A), as well as to tax u/s. 115WA(1). In fact, it does not admit to FBT even in respect of the employees not covered u/s. 17(2)(iii), i.e., on which the plea of the tax being payable by the employee is, even de hors s. 192, not applicable. Assessee's appeal dismissed.
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