TMI Blog2006 (9) TMI 347X X X X Extracts X X X X X X X X Extracts X X X X ..... ng the course of assessment proceedings, the Assessing Officer has made various additions and disallowances in the total income of the assessee. Details of various such additions/disallowances finally sustained by the CIT(A)/Tribunal are under the head tax perquisites, society charges and electricity perquisites and food and accommodation perquisites and the same are tabulated as under : Asst. Year Additions Tax perquisite Considered Society Charges electricity perq. by A.O. for Food Accommod- ation perq. Levying Total addition Penalty Levied by A.O. 1991-92 15,38,713 17,550 50,000 16,06,263 8,99,508 1992-93 20,55,015 14,336 50,000 21,19,351 11,86,837 1993-94 44,82,643 14,820 50,000 15,47,483 6,93,263 4. The Assessing Officer has initiated the penalty proceedings under section 271(1)( c ) of the Act for concealment of income or furnishing of inaccurate particulars. Before the Assessing Officer, the assessee has emphatically pleaded that the amount being tax perquisite added back to the total ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d an appeal before the CIT(A), but, did not find favour with him. Now the assessee preferred an appeal before the Tribunal with the submissions that the assessee was a foreign national and was working in Hotel Leela Venture Ltd. The learned counsel for the assessee has invited our attention to the letter issued by the Government of India, Department of Tourism dated 19-10-1990 and letter of RBI dated 30-10-1990 through which engagement of the assessee was approved as a Vice-President (Operation) and General Manager (Corporate) in Hotel Leela Venture Ltd. He further invited our attention to the certificate given by the C.A. M/s. Shetty Shetty through which it has been clarified that the assessee was employed at the salary of U.S. $ 5,000 per month, and the tax if any will be borne by the company. He has also given the computation of the salary and the tax liability. He further invited our attention to the computation of income appearing at page Nos. 43 and 44 in which he claims the TDS deducted on salaries. Our attention was also invited to the salary statement of the assessee in which TDS was deducted by the employer of the assessee was shown. Our attention was also invited to th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... which the claim of exemption of the assessee was disallowed on the ground that the assessee was appointed as a Vice-President (Operation) and General Manager (Corporate) and has not looked after or supervised the cookery activity in the hotel. The learned counsel for the assessee further contended that the assessee has claimed an exemption under bona fide belief and also on the opinion of the chartered accountant and has furnished the complete particulars through its return of income. Since assessee has not concealed any income or has furnished inaccurate particulars, no penalty under section 271(1)( c ) can be levied against the assessee. 6. The learned DR on the other hand has placed heavy reliance upon the Order of the CIT(A). He further contended that the assessee was appointed as a Vice-President (Operation) and General Manager (Corporate) and he was not engaged in any activity of cookery in the hotel, as such, he cannot claim an exemption under section 10(6)( viia ) of the Income-tax Act. Having known this fact that he has not entitled for an exemption, the assessee claimed an exemption resulting into a loss to the revenue. Since the assessee has raised a wrong claim to ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... We have also seen the certificate given by the Chartered Accountant classifying the assessee as a technician under provision of section 10(6)( viia ) of the Income-tax Act. We have also examined the computation of income and the salary certificate and we find that it was computed keeping in mind that assessee is a technician and is eligible for exemption under section 10(6)( viia ). In its computation of income assessee has furnished the full details of his claim and none of the relevant facts were concealed by the assessee. The statement of the salary along with the date of deductions of TDS in Form No. 16 was also furnished along with the return of income. It is also noticed from the letters of approval issued by the Government that the assessee was appointed as a technician though in the capacity of Vicc-President (Operation) and General Manager (Corporate) as the subject of the letter is titled as "Engagement of Technician by M/s. Hotel Leela Venture Limited", though in the body of the letter it was stated that the assessee was appointed as a Vice-President (Operation) and General Manager (Corpo- rate). Meaning thereby, that from day one, assessee was under the impression that ..... X X X X Extracts X X X X X X X X Extracts X X X X
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