TaxTMI 
TaxTMI 
2017 (8) TMI 738
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....an order passed by the Assessing Officer (AO) under Section 143(3) of the Income Tax Act, 1961 (in short the Act), dated 31/12/2008. 2. The appeal filed by the Revenue and the cross objections filed by the Assessee relate to the same assessee, same assessment year, common issues involved, therefore, these have been clubbed and heard together and a consolidated order is being passed for the sake of convenience. 3. Brief facts of the case qua the assessee are that the assessee is a non resident partnership firm. The partnership was formed by a deed of agreement dated December 23, 1998 in the U.K. between Joy Mining Machinery Ltd. (JMML) having registered office at Bromyard Road, Worcestor, UK and Joy Manufacturing Company (U.K) Ltd. having ....
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....ssee filed the revised return on dated 19.04.2007. The assessee`s case was selected for scrutiny U/s 143(2) of the Act and the Assessing Officer completed the assessment by making the disallowance U/s 40(a) (ia) of the Income Tax Act at Rs. 30,16,461/-. The Assessing Officer observed that 'Tax' on 'Tax perquisite' being non-monetary in nature and paid by the assessee on behalf of its employees, is not to be added again for the purpose of computation of taxable income of the employee and consequently, it is not an admissible expenses in the hands of the employer U/s 40(a) (v) of the Act and this way the Assessing officer disallowed Rs. 30,16,461/-. 4.Disatisfied with the order of Assessing Officer, the assessee filed an appeal before the Co....
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....ct and accordingly the ld CIT(A) deleted the addition. 5. Not being satisfied with the order of the ld CIT(A), the Revenue is in appeal before us and has taken the following grounds of appeal. "1) that on the facts and circumstances of the case the ld CIT(A) erred in allowing a relief of Rs. 30,16,461/- to the assessee by deleting the disallowance made by the assessing officer U/s 40(a)(v) of the I.T. Act1961. 2) that on the facts and circumstances of the case the ld CIT(A) erred in not accepting the fact that 'tax' on 'tax perquisite' being non-monetary in nature and paid by the assessee on behalf of its employees, is not to be added again for the purpose of computation of taxable income of the employee and consequently, it is not an....
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....not be deducted in computing the income chargeable under the head "Profits and gains of business or profession"- (a) in the case of an assessee- ........................... [(v) any tax actually paid by an employer referred to in clause (10CC) of section 10] Further, Section 10(10CC) of the Act reads as follows- "............Incomes not included in total income. 10.In computing the total income of a previous year of any person any income falling within any of the following clauses shall not be included- [(10CC) in the case of an employee, being an individual driving income in the nature of a perquisite, not provided for by way of monetary payment, within the meaning of clause (2) of section 17, the tax on such income actually paid....