TaxTMI 
TaxTMI 
2017 (12) TMI 1066
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....onsultant') for carrying out a project in the site of KSEB, as per the terms of an agreement, entered into between the KSEB and the Consultant. The liability to pay the salary, of the employees deputed by the Consultant to the project site, is of the Consultant itself. However, the income tax component had to be satisfied by the KSEB. 2. The petitioners, who were employees deputed by the Consultant, returned their income received in India and showed the tax component paid by the KSEB as "income from other sources". The Assessing Officer added on the tax paid by KSEB, returned as "income from other sources", to the salary paid and computed the total salary paid as provided in Section 195A of the Income Tax Act, 1961 ('Act' for....
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.... especially the income tax payable for the salary income of the employees of the Consultants deputed to serve in India. Clause 1.9.2, which is a non obstante clause, refers to any other taxes, duties, levies etc payable by the Consultant or its personnel, in India or outside India, to be the sole liability of the Consultant, absolving the KSEB from such liability. 5. We find from the order of the Tribunal that the Tribunal has relied on the non obstante clause 1.9.2 to hold that the KSEB is not paying the salary or the tax, but, gets it reimbursed from the Consultant. It is the finding of the Tribunal that tax liability being not the liability of the KSEB, both the salary and the tax is paid by the very same person. Hence, the argument o....
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....deduction of tax is neither more nor less than a contract to pay the amount of the salary plus the amount of tax; and in such a case the profit of the office or employment is measured by the sum of the two figures. If the assessee were asked what profit he gets from employment he would say that he gets so much amount in money and so much amount by way of income-tax in respect of the salary paid by the employer. It will be on the aggregate of these two sums that income-tax will have to be calculated. In North British Railway Company v. Scott [1922] 8 TC 332 (HL), a railway officer had, by contract, a salary which was to be paid free of tax, and it was held that the effect was that the real salary was the sum which after deduction of the tax ....
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.... tax. The assessee received salary for the years 1974-1975 and 1975-1976, for which no tax was paid. When a demand was raised, Ballarpur paid the tax demanded from the assessee. The question was whether the income tax paid by Ballarpur was assessable as income in the hands of the employee. Section 195A of the Act was not available at that point of time and even then the finding of the Tribunal that the tax paid is liable to be assessed as "income from other sources", was upheld. Hence, the tax paid directly to the revenue would be income of the employee; but, the direction to assess it as "income from other sources" was in the context of there being no analogous provision as Section 195A in the Act at that point, being the assessment years ....