2001 (7) TMI 291 - AT - Income Tax

Summary

Issues:
1. Common issues in appeals by the assessee.
2. Taxing of perquisites and levy of interest under section 220(2).

Analysis:

Common Issues in Appeals:
The appeals by the assessee involved common issues, and both were disposed of together for convenience. The learned counsel for the assessee argued that the issues raised were covered by a previous decision of the Tribunal in the assessee's own case for the assessment year 1990-91. The Departmental Representative acknowledged that the main issues were covered on merits but raised a concern regarding the taxing of perquisites. The counsel for the assessee contested this, arguing that the cited decision by the Hon'ble Rajasthan High Court was not applicable to the present case. The Tribunal carefully considered the arguments and relevant material presented by both parties.

Taxing of Perquisites and Interest under Section 220(2):
The Hon'ble Rajasthan High Court's decision in the case of Prem Agencies vs. CIT was discussed, emphasizing that the Tribunal's scope is limited when the appeal is against the order of remand. However, in the present case, where the assessee challenged the action of the CIT(A) on the merits, the Tribunal found the High Court's decision not directly applicable. The Tribunal also referred to a decision by the Jaipur Bench of ITAT supporting their interpretation. On the merits of the case, the issues raised by the assessee were found to be covered in their favor by a previous decision of the Tribunal for the assessment year 1990-91. Consequently, the Tribunal directed the Assessing Officer to delete the additions made on those counts. The levy of interest under section 220(2) was considered consequential, and relief was granted to the assessee. Other general grounds raised in the appeals did not require specific decisions. Ultimately, both appeals by the assessee were allowed.

This detailed analysis provides a comprehensive overview of the judgment, addressing the common issues in the appeals and the specific concerns regarding the taxing of perquisites and the levy of interest under section 220(2).