2013 (4) TMI 312

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....ployed by the assessee. The appeals relate to income tax paid by assessee on behalf of assessee for which assessee had claimed deduction u/s 10(10CC) of the Income Tax Act, 1961 and for which Assessing Officer did not agree. The grounds of appeal in respect of first person are as under:- 1. Whether on the facts and in the circumstances of the case, the CIT(A) has erred in holding that the tax paid by the employer on the salary/remuneration of the employee, although a monetary perquisite is covered under section 17(2) of the IT Act since it is paid on his account to the Income Tax Department. 2. Whether on the facts and in the circumstances of the case, the CIT(A) has erred in holding that the tax paid by the employer on the salary/rem....

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.... option of an employer is a non monetary perquisite fully covered by section 17(2) (iv) of the Act and thus was exempt u/s 10(10CC) of the Act and was not liable to be included in the total income of an employee. It was further held in this case that taxes paid by employer can be added only once in the salary of an employee and therefore the tax on such perquisite cannot be added again. The Assessing Officer further held that tax perquisite against which exemption was claimed was not eligible for exemption under the provisions of section 10(10CC) of the Act and therefore the value of tax perquisite was added to the income of assessee. 4. Aggrieved by the order, the assessee carried the matter to Ld CIT(A) and Ld CIT(A) after going throug....

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....t and as such the same would be exempted u/s 10(10CC of the Income Tax Act, 1961)." The same has been replied by the Hon'ble High Court in para 10 which is reproduced as under:- "There is no dispute that the employer has entered into agreements with the employees and thereby has taken over an obligation to pay income tax payable by the employees. If the employer was not obliged to pay such income tax, the same would have been payable by the employees in question. Such payment as has been provided in section 10(10CC) is notwithstanding anything contained in section 200 of the Companies Act, 1956. Therefore, the payment of tax to the Income tax Department on account of salaries/remunerations of the employees not by way of monetary payme....