TMI Blog2006 (3) TMI 215X X X X Extracts X X X X X X X X Extracts X X X X ..... doubt about the taxability of the foreign component of the salary. It cannot be disputed that u/s 192, what the deductor is expected to do is to make a bona fide estimate of the salary and deduct tax therefrom. In the present case, the assessee has proved its bona fides to the hilt and thus, cannot be regarded as an assessee in default. The assessee's case is fully covered in its favour by several decisions of the Tribunal and hence we need not detain ourselves for long to discuss at length the issues before us. Thus, we hold the orders for financial years 1988-89 to 1994-95 to be invalid on grounds of limitation and for financial years 1995-96 to 1998-99, we hold the assessee not to be in default. Since orders for seven years are held ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... to be an assessee in default under s. 201(1) of the IT Act, 1961 (the Act). In the next two grounds, the assessee is aggrieved against holding housing norm to be a part of salary subject to deduction of tax at source. In addition to this, this assessee has raised an additional ground only in respect of financial years 1988-89 to 1994-95. By way of this additional ground, the assessee has challenged the validity of the order dt. 16th Dec., 1999 passed under ss. 201(1) and 201(1A) of the Act on grounds of limitation. After hearing the parties on the admissibility of the ground, we admit the same as it challenges the very jurisdiction of the AO to pass the said order. Thus, in the fitness of things, it would be proper to deal with this ground ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... aterial or where it was necessary to do so on a closer and more analytical approach. For this proposition, the learned Departmental Representative relied on the following judgments: (1) CIT vs. Kalpetta Estates Ltd. (1994) 122 CTR (Ker) 410 : (1995) 211 ITR 635 (Ker) (2) J. Bheemananda Gupta vs. Asstt. CIT (2001) 168 CTR (Kar) 464 : (2001) 250 ITR 537 (Kar). (3) Jt. Family of Udayan Chinubhai vs. CIT (1967) 63ITR 416 (SC) To the above arguments of the learned Departmental Representative, the reply of the learned counsel was that on facts more analysis can be made but not on a question of law. 4. We have heard the rival contentions. Let us first consider the fact that the learned counsel has placed on record as many as six decisions of the T ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... one of the courses open to us is to refer the matter to a Special Bench. However, we are not inclined to do so on account of several reasons which we now proceed to record. 6. First and foremost, the Tribunal has questioned the authority of the Tribunal to read a time limit where none is prescribed in the statute. In the case of Motorola, a larger Bench of the Tribunal considered the issue whether notice issued under s. 142(1) was barred by limitation though no limitation period was prescribed under the Act. Thus, when a larger Bench of the Tribunal had assumed upon itself to determine a similar issue, we see no reason to refer this matter to the Special Bench. 7. Secondly, a similar issue was considered by the Supreme Court in the case of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... oreign component of salary stands accepted by the Tribunal for these very years in penalty proceedings. This was in ITA Nos. 3019 to 3029/Del/2001, dt.17th Sept., 2004 whereby the penalty levied under s. 271C was cancelled. In this order, the Tribunal has relied on its orders in case of similarly placed other companies, viz. Marubeni Corporation (Liaison Office) vs. Jt. CIT (ITA Nos. 3581 to 3587/Del/2000, dt. 11th Dec., 2001), Fuji Bank Ltd. (ITA Nos. 2744 to 2750/Del/2000, dt. 20th Dec., 2001) and Mitsui Co. Ltd. (ITA No. 87/Del/1999, dt. 6th May, 2004). 10. Further, in the assessee's case, the Tribunal also found that even before the survey, the assessee was trying to resolve the dispute and they had prepared a letter which was hande ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
