TaxTMI 
TaxTMI 
2020 (3) TMI 473
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....ax Act, 1961 ("the Act" for short) is preferred by the revenue against the order dated 3.1.2008 passed by the Income Tax Appellate Tribunal, Mumbai Special Bench 'C', Mumbai ("Tribunal" for short) in Income Tax Appeal No. 238/M/2015 for the assessment year 1998-99. 3. By order dated 7.10.2008, the appeal was admitted on the following substantial questions of law:- (A) Whether on the facts and in the circumstances of the case and in law, the Tribunal is correct in holding that the SARs and stock options are distinct despite Notification No. 323/2001 dated 11.10.2001 and the tax consequences of SARs and stock options are at variance? (B) Whether on the facts and in the circumstances of the case and in law, the Tribunal is....
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....9, the petitioner - an individual assessee having salary and professional income, filed return of income disclosing total income of Rs. 26,76,900.00. The assessment was reopened on the ground that assessee had received right of redemption in respect of stock appreciation rights ("SARs" for short) of M/s. Procter & Gamble (India) Ltd during the relevant previous year. Assessee was an employee of M/s. Procter & Gamble (India) Ltd and by virtue of his employment, he had received the SARs. On redemption, the value of SARs was Rs. 4,79,13,852.00 which was construed to be taxable income of the assessee by the Assessing Officer and which had escaped assessment. 5. On notice, petitioner - assessee submitted his reply contending that the quantum ....
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....xable perquisite under the head salaries." 8. Thereafter, the appeal was heard by a special bench of the Tribunal comprising two judicial members and one accountant member. Ultimately, the special bench held that the assessee's receipts of whatever nature in connection with his employment are to be treated as salary. Therefore, the view taken by the revenue authorities was upheld. 8.1. Hence, this appeal. 9. Submissions made by learned counsel for the parties have been considered. 10. Chapter IV of the Act deals with computation of total income. Section 14 provides for different heads of income, such as, salaries, income from house property, profits and gains of business or profession, capital gains and income from other sources....
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....eat equity shares" means equity shares issued by a company to its employees or directors at a discount or for consideration other than cash for providing know-how or making available rights in the nature of intellectual property rights or value additions, by whatever name called; and (d) "value" means the difference between the fair market value and the cost for acquiring specified securities;" 10.1. Therefore, as per this provision, a perquisite would also include the value of any specified security allotted or transferred, directly or indirectly by any person free of cost or at concessional rate to an individual who is or has been in employment of that person. 11. It may be mentioned that the Tribunal's findings in the case....