2009 (8) TMI 531

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....tain number of stock at Re. 1 per stock, subject to certain conditions under the Employees Stock Option Scheme, by the employer, M/s. Infosys, did not amount to a taxable perquisite and the value of the shares were not disclosed as taxable income in the original returns of income filed under the Income-tax Act, 1961, for short "the Act", as follows: (i) S. Thigarajan - assessment year - 1999-2000 (ii) U. Ramadas Kamath - assessment years - 1998-99 and 1999-2000 (iii) Suresh Kamath K - assessment years - 1998-1999 and 1999-2000 3. The Deputy Commissioner of Income-tax (TDS) by order dated October 7, 1999, held that the shares being perquisites, their value required to be disclosed and for failure of the employer, M/s. Infosys, to....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

..... Infosys Technologies Ltd. [2007] 293 ITR 146 (Karn).] and C. A. No. 3725 of 2007, dated January 4, 2008[See CIT v. Infosys Technologies Ltd. [2008] 297 ITR 167 (SC).], respectively. The Revenue was thus obliged to comply with the Orders of the Income-tax Appellate Tribunal as confirmed by this court and the apex court as well as the order dated August 14, 2002, of the Assistant Commissioner of Income-tax (TDS) directing refund of the TDS. 7. It appears that the petitioners filed applications to condone the delay in preferring the revised returns, which the Chief Commissioner of Income tax, in exercise of the jurisdiction under section 119(2)(b) of the Act, by order dated July 22, 2008, condoned the delay but declined admissible interes....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....or interference. Before proceeding to examine the contentions of the parties it is useful to extract section 240 and section 244A(1) (a) and (b) which read thus: "240. Refund on appeal, etc. - Where, as a result of any order passed in appeal or other proceeding under this Act, refund of any amount becomes due to the assessee, the Assessing Officer shall, except as otherwise provided in this Act, refund the amount to the assessee, without his having to make any claim in that behalf: Provided that where, by the order aforesaid, - (a) an assessment is set aside or cancelled and an order of fresh assessment is directed to be made, the refund, if any, shall become due only on the making of such fresh assessment; (b) the assessment....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....ty specified in the notice of demand issued under section 156 is paid in excess of such demand." 12. An examination of the orders impugned discloses rejection of the Revenue's contention that allotment of shares to the employees under the stock option offered by the employer was a perquisite, and as a consequence, the TDS remitted to the Revenue, by the employer M/s. Infosys, by deducting from out of the salary of the petitioners was to be refunded. This is axiomatic in the light of section 240 of the Act, an obligation cast on the Revenue to effect the refund, without having to call upon the petitioners to apply for refund claim. So also in view of section 244A of the Act, the Revenue is bound to pay interest at one half per cent. on th....