TaxTMI 
TaxTMI 
2008 (8) TMI 57
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....very narrow compass, in as much as, the assessee, at the relevant time, was sitting MLA, and former Chief Minister of the State, who had submitted his return of income, received by him as salary, and disclosing other incomes also, however notice under Section 148 was issued for the reason, that the assessee received a sum of Rs. 1,28,643/- from the State Government, as reimbursement of medical expenses in the relevant previous year, which amount was contended to be, liable to be taxed, under Section 17, which had not been offered, for assessment in the return. 3. The learned Commissioner, while allowing the appeal, examined the matter, and in paragraph 9, noticed the contention of the assessee, that the amount received by the MPs and MLAs ....
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....tribunal. 5. The appeal was admitted vide order dated 4.10.2006, by framing following substantial question of law :- (i)Whether remuneration/allowances paid to assessee as a member of Legislative Assembly is taxable under the head "Income from salary". (ii) If so whether in the facts and circumstances of the case, the reimbursement of medical treatment taken by the assessee, who was a member of the Legislative Assembly for open heart surgery conducted abroad is taxable as perquisite under Section 17 (2) (iv) of the Income Tax Act, 1961?" 6. It would, suffice to say, that in view of what has been noticed in para 9 of the judgment of learned Commissioner of Income-tax, it cannot be said, that these two questions, at all arise; When it was....
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....er and employee, whether in existence, or in the past. Obviously, and inherently, in the very nature of things, for bringing about such relationship, the assessee, being the person concerned, should have been employed by the employer, and as a necessary corollary, the employer should have right to discharge or terminate the employee. This basic ingredient is missing in the case of MLAs and MPs, as they are not employed by anybody, rather, they are elected by the public, forming their election constituencies, and it is consequent upon such election, that they acquire constitutional position, and discharge constitutional functions and obligations. May be, that they receive remunerations after swearing in, but then, it cannot be said to be sal....