2013 (6) TMI 156

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

.... return was filed declaring an income of Rs. 98,24,750/- on 14-01-1998. In this case the assessment was reopened u/s 147(a) of the Income Tax Act, 1961 (the Act) by issue of notice u/s 148 of the Act dtd. 20-11-1998. Thereafter, the A.O. issued statutory notices u/s 143(2) and 142(1) of the Act. In the absence of any details furnished by the assessee, the A.O. proceeded to complete the assessment ex parte u/s 144 of the Act based on the details available on record. During the course of assessment proceeding, it was, inter alia, observed by the A.O. that the assessee is entitled to tax equalization from the employer in U.S. The tax equalization has been worked out at Rs. 16,84,498/- by the assessee. The working has been based on the Indian T....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....d in holding that the A.O. erred in adopting the value of perquisite at Rs. 39,03,900/- on the ground that the tax perquisite ought to be considered only at Rs. 16,84,498/- and this amount was already offered for tax." 4. At the time of hearing the ld. D.R. supports the order of the A.O. 5. On the other hand, the ld. Counsel for the assessee while referring to the chart of computation of taxable income and tax liability along with relevant annexure appearing at page 7, 8 & 9 of the assessee's paper book submits that the issue stands covered in favour of the assessee by the decision of the Hon'ble jurisdictional High Court in CIT vs. Mr. Jaidev H. Raja (2012) 211 Taxmann 188 (Bombay). He, therefore, submits that the order passed by the....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....nal and the Hon'ble Calcutta High Court (supra), however, accepted the claim of the assessee and deleted the addition made by the A.O. 7. In Jaidev H. Raja (supra) it has been observed and held in para 5 of the judgment as under:- "5. On further appeal, the ITAT in Paragraph 11 of its order has recorded a finding that the total salary received by the assessee in India was Rs. 77.00 lakhs on which the tax payable at the maximum rate of 44.8% comes to Rs. 35.00 lakhs. Since the assessee under the Tax Equalization Policy was entitled to get reimbursement of the tax payable on the amount of Rs. 77.00 lacs, the assessee was justified in computing the salary income at Rs. 113.00 lakhs (Rs. 77.00 lacs plus Rs. 35.00 lacs) which almost tallie....