2012 (8) TMI 426

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...., we allow the said application. 2. By consent of the parties, Income Tax Appeal Nos. 25 of 2010, 26 of 2010, 28 of 2010, 29 of 2010 and 22 of 2011 are treated on the day's list. 3. In Income Tax Appeal No. 22 of 2011, since the respondents are present, we have proceeded, as if, service has been effected upon the respondents. 4. The sole question involved in these appeals is:- "whether the tax paid by the employer on the salaries/ remunerations of the employees would constitute non-monetary benefits and, as such, the same would be exempted under Section 10 (10CC) of the Income Tax Act?"   5. The facts, to which there is no dispute, are that the employer paid salaries/remunerations to its employees. In addition to that, t....

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...., Section 10 (10CC) of the Income Tax Act, 1956 provides that in the case of an employee, being an individual deriving income in the nature of a perquisite not provided for by way of monetary payment, within the meaning of clause (2) of Section 17 of the Act, the tax on such income actually paid by his employer, at the option of the employer, on behalf of such employee, notwithstanding anything contained in Section 200 of the Companies Act, 1956 shall be excluded in computing total income of a previous year of such an employee. Therefore, despite prohibition contemplated in the Companies Act for payment of tax free remuneration to an employee, Section 10(10CC) of the Act has provided that notwithstanding anything contained in the Companies ....