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Dy General Manager (F & A) Oil And Natural Gas Corporation Ltd Versus Asstt Commissioner of Income Tax (TDS)

2016 (1) TMI 526 - ITAT AHMEDABAD

Non deducting tax at source on uniform reimbursements to its employees - Salary u/s. 17(1)(IV) liable for TDS deduction - whether uniform allowance to be exempt u/s. 10(14)(I) r.w.r. 2BB? - Held that:- The assessee's arguments are not liable to be accepted. It transpires from the stated circular no. 23/2010 issued on 29th March, 2010 prescribing uniform of its employees that what is prescribed is only dress of its employees i.e. shirts, trousowers, ties, belts for gents and salwar kameez etc for .....

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er appellate stage. The assessee's arguments do not dispel the same. We hold accordingly that its arguments herein above have to be rejected on merits as well consistency. We affirm the lower appellate order in all for cases. - Decided against assessee. - ITA Nos.155, 159, 287 & 332/Ahd/2012 - Dated:- 4-9-2015 - PRAMOD KUMAR, AM AND S S GODARA, JM For the Petitioner : Shri S N Soparkar, AR For the Respondent : Shri Sanjay Agrawal, CIT-DR ORDER Per: S S Godara: These four assessee's appeals f .....

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TDS), Baroda whereby the appellant was held to be an assessee in default for not deducting tax at source from, inter-alia, reimbursement of cost of uniform, stitching charges, washing expenses, etc. (hereinafter "uniform reimbursements"), made to its employees and was called upon to pay the tax allegedly short deduced from its employees u/s. 201(1) and interest thereon u/s. 201(1 A) of the Income-tax Act, 1961 (hereinafter "Act"). 2. The learned CIT (Appeals) has erred in law .....

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has erred in law and in facts and circumstances of the case in upholding the ACIT (TDS), Baroda's action in raisin; demand for tax on uniform reimbursements and interest thereon ignoring the fact that the demand so raised by the ACIT (TDS), Baroda, included demand in respect of those employees from whom tax had already been deducted by the appellant itself." 3. This batch of four appeals arises from a survey conducted by the department as assessee's premises in Baroda and Ankleshwar .....

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ot;assessee in default". The assessee claimed the impugned uniform allowance to be exempt u/s. 10(14)(I) r.w.r. 2BB upto actual expenditure. The Assessing Officer in his order dated 10-03-2010 went by dictionary meaning of "uniform" and concluded that normal clothing worn by the assessee's employees do not come within the meaning thereof. This resulted in the impugned demands , 4. The assessee preferred appeal. The CIT(A) upholds the Assessing Officer's action as under:- & .....

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as per rank and designation of group of employees concerned. If appellant's interpretation of "uniform' were to be accepted, in every office, any dress worn by the employees' would qualify as 'uniform'. Appellant has not commented on the fact that prescribed uniform was done away in ONGC way back in 1995. There is no doubt that there was no 'uniform' prescribed in ONGC during the period under consideration and this fact was well within the knowledge of appellant. .....

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arations furnished by employees is not tenable since appellant was well aware that there was no 'uniform' prescribed and question of any allowance to maintain the same did not arise. Since the allowance paid was not towards maintenance of uniform by employees, there being no uniform prescribed in ONGC, the whole debate regarding 'uniform allowance' being liable to FBT or not is irrelevant. As held above, the payment in question was additional salary to employees in the garb of &# .....

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ced that a co-ordinate had earlier dismissed these appeals on 14- 02-2014 after holding that its query as to whether any uniform had been prescribed for its employees by the company stood answered in negative during the course of hearing. This made the learned coordinate bench to observe that the impugned allowance could not held to be exempt u/s. 10(14)(I) r.w.r. 2BB(1)(f). Thereafter, the assessee filed Miscellaneous Petitions bearing No. 184- 187/Ahd/2014 pleading that the company had in fact .....

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to relevant circular no. 23/2010 issued on 29th March, 2010 prescribing uniform of its employees as under:- "OIL AND NATURAL GAS CORPORATION LIMITED (CORPORATE POLICY GROUP) TEL BHAVAN: DEHRADUN No. ONGC/ER/CP/REM/006 Dated: 29th March, 2010 CIRCULAR (23/2010) Sub: Reimbursement towards cost of purchase, stitching and maintenance of uniform: compulsory wearing of uniform. The reimbursable amount for purchase of uniform and stitching/maintenance thereof is reimbursed to the employees every y .....

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The dress code to be followed by the employee is annexed. 4. It is enjoined upon all employees to follow the prescribed Dress Code failing which appropriate action shall be taken against the concerned employee. (Sundar Lal) GGM-Chief, ER Distribution: As per standard mailing list DRESS CODE TO BE FOLLOWED BY THE EMLPLOYEES IN ONGC. 1. FOR MEN (A) Shirts Full/half sleeved well-fitted, buttoned and ironed formal shirts . Loud checks/printed shirts should be avoided. Striped shirts are permissible. .....

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