2018 (6) TMI 1115

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....ee as the assessee in default for A.Y. 2011-12 and 2012-13. 2. The assessee in the present case is a company. A survey under section 133A was carried out in the business premises of the assessee company on 13th September, 2013. Subsequently, from the relevant details furnished by the assessee, the amount of tax deducted from the payments of various expenses was verified by the A.O. On such verification, he found that payments of Rs. 29,51,709/- and Rs. 34,00,802/- were made by the assessee company to different employees towards car running and maintenance expenses and the same were treated as exempt while computing the taxable salary income of the said employees for TDS purpose. During the course of survey and even thereafter, the assess....

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....esaid reimbursement are simply reimbursement of car running and maintenance expenses for performing official duty/work therefore the findings given by the Ld. ITO(TDS) is arbitrary, unjust, erroneous and contrary to the facts of the case and provisions of law. The payments were made for reimbursement of car running and maintenance expenses to certain category of employees incurred by them for performing official duty/work. Most of these employees are scientists occupied with their scientific research works and therefore it was not conversant for them to maintain proper log book and this cannot be made a case for default in TDS." 4. The Ld. CIT(A) did not find merit in the submission of the assessee and proceeded to confirm the o....

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....-section (2) of section 17, perquisite includes the value of any other fringe benefit or amenity as may be prescribed. Such other fringe benefits or amenities as mentioned in Clause (viii) of sub-section (2) of section 17 are prescribed in rule 3 of Income Tax Rule, 1962 and even the method of valuation thereof is prescribed. The method of valuation of perquisite provided by way of use of motor car to an employee is given in subrule (2A) of rule 3 in tabular form and as per serial no 2 of the said table, where the employee owns a motor car but the actual running and maintenance charges are met and reimbursed to him by the employer, this perquisite will have no value if such reimbursement is for the use of vehicle wholly and exclusively for ....