2019 (8) TMI 1488

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...."the Act") dated 05/12/2016 relevant to Assessment Year (AY) 2014-15. The assessee has raised the following grounds of appeal: 1 The addition made on account of excess claim u/s.10 of the Income Tax Act 1961 of Rs. 4,26,247/- be deleted being double addition of the said income. 2 The addition made on account of excess amount of PRBS claimed of Rs. 5,849/- be deleted being double addition of the said amount. Without prejudice to the above, appellant reserves its right to make any amendment to the grounds of appeal at the time of hearing. The interconnected issue raised by the assessee is that the learned CIT (A) erred in confirming the addition made by the AO for Rs.4,32,096 (426247+ 5,849) on account of the contribution made by the....

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....r of the AO by observing as under: 3.3. I have considered the submissions of the learned Authorized Representative and the order of the Assessing Officer, I have carefully considered the order of the Assessing Officer and the submission of the appellant. The first issue is the appellant has claimed exempt income u/s,17(2)(vii} of the Act of Rs. 4,32,094/- after claiming basic exemption to the extent of Rs. 1,00,000/-. The A.O. observed that the assessee has wrongly claimed the amount received from the employer under PRBS under Chapter-VIA of the Act of Rs. 4,26,247/-. In original return of income the assessee has chimed deduction u/s.10 Employer Superannuation Fund directly from gross salary u/s.!7(2)(vii) to the tune of Rs. 1,00,000/- an....

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....e lakh rupees is taxable. Perquisites are benefits provided by the employers in addition to the normal salary at a free of cost or concession rates. Income tax act defines Perquisite as any casual emolument or benefit attached to an office or position in addition to salary or wages. Value of these perquisites is added to the income of employees. Hence Perquisites are taxabic. From the facts and circumstances of the case, it is seen that the assessee has deliberately attempt to take undue advantage by wrong claim which the A.O. has clearly mentioned in the assessment order. Thus, the action of the A.O is upheld and no further inference / is drawn. Thus, the addition of Rs. 4,26,247/- is confirmed as excess claim u/s.10 of the I.T. Act. 3....

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....ards the superannuation fund which is taxable being the part of salary under the provisions of section 17 of the Act for the amount representing over and above the Rs.1 lakh. In other words the assessee can claim the deduction on account of the contribution made by the employer to the tune of Rs.1 lakh under the provisions of section 17(2)(vii) of the Act. Thus the amount contributed by the employer over and above Rs.1 lakh is subject to tax in the hands of the assessee. 6.1 On perusal of the form 16 issued by the employer, we note that the amount of Rs. 4,32,094.00 has already been shown as income therein which has suffered the tax liability. 6.2 We further note that the assessee in the revised return of income claimed the relief under ....