TaxTMI 
TaxTMI 
2016 (1) TMI 526
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....learned Commissioner of Income-tax (Appeals)-I, Baroda (hereinafter "CIT (Appeals)") has erred in law and in facts and circumstances of the case in upholding the order passed by ACIT (TDS), Baroda whereby the appellant was held to be an assessee in default for not deducting tax at source from, inter-alia, reimbursement of cost of uniform, stitching charges, washing expenses, etc. (hereinafter "uniform reimbursements"), made to its employees and was called upon to pay the tax allegedly short deduced from its employees u/s. 201(1) and interest thereon u/s. 201(1 A) of the Income-tax Act, 1961 (hereinafter "Act"). 2. The learned CIT (Appeals) has erred in law and in facts and circumstances of the case in not deleting the demand u/s. 201(1) o....
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.... u/s. 10(14)(I) r.w.r. 2BB upto actual expenditure. The Assessing Officer in his order dated 10-03-2010 went by dictionary meaning of "uniform" and concluded that normal clothing worn by the assessee's employees do not come within the meaning thereof. This resulted in the impugned demands , 4. The assessee preferred appeal. The CIT(A) upholds the Assessing Officer's action as under:- "Appellant's contention that the normal dress worn by its employees in office is "uniform" cannot be accepted. As per Random House dictionary meaning cited by the appellant, dictionary meaning cited by the ACIT (TDS) or otherwise understood in common parlance, "uniform" is an identifying outfit or style of dress which is identical or consistent w....
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....o FBT or not is irrelevant. As held above, the payment in question was additional salary to employees in the garb of 'uniform allowance'. Such direct payment of additional salary is not liable to FBT under any of the clauses of section 115WB either as fringe benefits listed in sub section (1) or deemed fringe benefits listed in subsection (2). It is held that ACIT(TDS) was justified in holding appellant to be assessee in default u/s. 201(1) for not deducting tax at source from uniform allowance paid for all the years under appeal." 5. We have heard both the parties and perused the case file. We noticed that a co-ordinate had earlier dismissed these appeals on 14- 02-2014 after holding that its query as to whether any uniform had be....
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....to wear the uniform while on duty. It has however been observed that in spite of repeated instructions, employees are not wearing uniform on duty. Nonadhering to the existing guidelines on uniform/dress code has been viewed seriously. 3. Therefore, it has been decided that all employees who are reimbursed cost of uniform shall compulsorily maintain dress code while on duty. The dress code to be followed by the employee is annexed. 4. It is enjoined upon all employees to follow the prescribed Dress Code failing which appropriate action shall be taken against the concerned employee. (Sundar Lal) GGM-Chief, ER Distribution: As per standard mailing list DRESS CODE TO BE FOLLOWED BY THE EMLPLOYEES IN ONGC. 1. FOR MEN (A) Sh....