TMI Blog1993 (10) TMI 58X X X X Extracts X X X X X X X X Extracts X X X X ..... source in Iran under section 91(1) of the Income-tax Act, 1961 ? 2. Whether, on the facts and in the circumstances of the case, the Tribunal was correct in holding that deductions made on account of compulsory health scheme from the salary is not includible in the salary income and is not taxable ? 3. Whether, on the facts and in the circumstances of the case, the Tribunal was justified in holding that value of perquisite on account of rent-free accommodation accruing outside India is not includible in the total income of the assessee ? 4. Whether, on the facts and in the circumstances of the case, the Tribunal was justified in cancelling the order passed by Commissioner of Income-tax under section 263 of the Income-tax Act, 1961 ?" ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... at source could be only 50 per cent. of the amount which was Rs. 6,539 and Rs. 4,141, respectively. The value of perquisites of the amount of deduction for Health Success Scheme was also liable to be included and, therefore, the power under section 263 of the Act was exercised. The assessment order was set aside in accordance with the direction given in the order to be made de novo. The order passed by the Commissioner of Income-tax was challenged before the Income-tax Appellate Tribunal and the Tribunal came to the conclusion that, the rent-free accommodation provided to the assessee in Iran could not be considered to be a perquisite as the same is not included in the total income at all by virtue of the section 5(1) of the Act. The Tribu ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... which- (a) is received or is deemed to be received in India in such year by or on behalf of such person ; or (b) accrues or arises or is deemed to accrue or arise to him in India during such year." Under the scheme of the Income-tax Act a person could be resident, ordinarily resident but not ordinarily resident. In the case of a resident certain income has to be included in the total income by the deeming fiction which has been given in section 5 of the Act. Section 80RRA provides for the deduction in respect of remuneration received for services rendered outside India which reads as under: "(1) Where the gross total income of an individual who is a citizen of India includes any remuneration received by him in foreign currency from ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... oves that, in respect of his income which accrued or arose during that previous year outside India (and which is not deemed to accrue or arise in India), has paid in any country with which there is no agreement under section 90 for the relief or avoidance of double taxation, income-tax, by deduction or otherwise, under the law in force in that country in respect of the income so included he shall be entitled to a deduction from the Indian income-tax payable by him of a sum calculated on such doubly taxed income so included at the Indian rate of tax or the rate of tax of the said country, whichever is lower, or at the Indian rate of tax if both the rates are equal. This court in CIT v. Dr. R. N. Jhanji [1990] 185 ITR 586, has held that the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of the Act. Section 10(14) also confers the power on the Central Government and if any amount is notified in the Official Gazette then the deduction to that extent can also be claimed. In accordance with the provisions of section 17 "perquisite" specifically includes the value of rent-free accommodation provided to the assessee by his employer and there is no notification or provision by which the deduction by way of compulsory health scheme could be allowed as deduction. Section 15 provides as to what shall be chargeable to tax under the head "Salaries". Section 2(24) defines income which includes perquisite and section 17(2) explains that the perquisite income shall include the accommodation provided to the assessee by his employer and ..... X X X X Extracts X X X X X X X X Extracts X X X X
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