TMI Blog2012 (8) TMI 426X X X X Extracts X X X X X X X X Extracts X X X X ..... ployees not by way of monetary payment to the employees concerned, but for or on their account to the Department and the same being one of the perquisites included in Section 17(2), such payment was to be excluded from the income of the employees - Decided in favor of assessee. - Income Tax Appeal No. 10 of 2010, 32 of 2010, 11 of 2010, 12 of 2010 - - - Dated:- 30-7-2012 - Barin Ghosh, C. J. Mr. Hari Mohan Bhatia, Advocate for the appellant. Mr. M.S. Syali, Senior Advocate assisted Mr. Abhimanyu Jhamba and Mr. S.K. Posti, Advocate for the respondents. Considering the averments made in Delay Condonation Application No. 5865 of 2010 in preferring the Income Tax Appeal No. 27 of 2010 and being satisfied that sufficient grou ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rendered in the case of RBF Rig Corporation LIC (RBFRC) versus Asstt. CIT, Dehradun, reported in (2007) 297 ITR 228. There is no dispute that in RBF Rig Corporation case, a substantial question of law was decided. Despite decision of such an important question of law, the Income Tax Department did not take the matter higher up. However, by presenting these appeals, the department has questioned, in fact, the validity of the law declared by the Tribunal in RBF Rig Corporation case. 6. Section 200 of the Companies Act, 1956 prohibits companies from paying to any officer or employee thereof any remuneration free of income tax. Tax free remuneration is one thing and payment of remuneration as well as tax payable thereon is another thing. 7 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... obligation which, but for such payment, would have been payable by the assessee . . . . . 9. According to Section 17(2) of the Act, perquisite includes many a things, including the one mentioned above. It includes value of rent-free accommodation, the value of any concession in the matter of rent, value of any benefit or amenity granted or provided free of cost, any sum payable by the employer on account of provident fund or on account of superannuation fund or towards the value of any other benefits, etc. Therefore, one of the perquisites, as mentioned in Section 17 (2) of the Act is any sum paid by the employer in respect of any of the obligation, which but for such payment, would have been payable by the assessee, i.e. the employee. ..... X X X X Extracts X X X X X X X X Extracts X X X X
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