2000 (12) TMI 69 - HC - Income Tax

Summary

The High Court of Madras ruled in favor of the assessee, an employee of an Italian company working in India. The Indian company only provided boarding, lodging, and daily expenses, while the Italian company paid the employee's salary in Italy. The Income-tax Officer's decision to gross up the salary and demand tax was deemed incorrect. The Tribunal upheld the Commissioner's decision, stating that the Indian company did not pay a tax-free salary to the employee. The Tribunal's decision was upheld, and the Revenue was directed to pay costs of Rs. 2,000.