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TMI Blog2006 (8) TMI 450X X X X Extracts X X X X X X X X Extracts X X X X ..... 200 of the I.T. Act and the other set of appeals are emanated from the order of the Assessing Officer passed under section 201(1A), read with section 192(1)/200 of the I.T. Act. 3. ITA Nos. 2826, 2827 and 2828/Mum/2003 : These appeals are emanated from the orders passed under section 201(1) of the I.T. Act and the facts borne out in this regard are that on verification of annual TDS return Form No. 24 and after conducting enquiry under section 133(6) the Assessing Officer found that the assessee s claim of exemption of professional pursuit allowance and corporate attire allowance under section 10( 14 ) was not correct on facts and in law. The Assessing Officer has treated these two allowances as taxable salary/perquisites under secti ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s per office circular issued by the assessee company, the employees were required to wear certain specified dress, for which purpose, they were entitled for reimbursement of the expenses. The assessee has filed certain sample copies of bills which were scrutinized by the CIT(A) himself and noted that the employees had purchased suiting/shirting, ready-made garments, chappals, shoes, khadi dress and other miscellaneous items. He further observed that all these items purchased by employees cannot be considered as part of specified dress code. As such, the entire expenses do not qualify for an exemption. The CIT(A), however, of the view that part of the expenses can be allowed as exempted in accordance with rule 2BB(1)( f ) of the I.T. Rules. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... w that these allowances were not taxable in the hands of the employees and excluding the same from the estimated income under section 192 for the purpose of deduction of tax at source. 7. The learned DR on the other hand has submitted that as per provisions of section 192(1), a responsible person is required to deduct TDS on the amount payable under the head "Salary" at the average rate of income-tax computed on the basis of the rates in force for the financial year in which the payment is made on the estimated income of the assessee. If any such person does not deduct the whole or part of the tax or after deducting, fails to pay the tax as required under this Act, he or it, without prejudicial to any other consequence, which he or it m ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... uniform of an employee. Only those expenses are exempted which are incurred for purchase and maintenance of uniform for wear during the performance of duties of an office or employment of profit. The CIT(A), however, took the cognizance of the circulars of the assessee-company and has granted exemption of a sum of Rs. 10,000 on each employee. Since the CIT(A) has taken a reasonable view and directed the Assessing Officer to recompute the taxable salary, no interference is called for in his order. 10. Having heard the rival submissions and from careful perusal of the record, we find that the revenue has disallowed the claim of allowances i.e. , (1) Professional Pursuit Allowance (2) Corporate Attire Allowance. During the course of hear ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... with regard to the Corporate Attire Allowances. In this case, the assessee has reimbursed all bills of purchases of clothes to its employees without verifying the facts whether suiting/shirting, ready-made garments, chappals, shoes, khadi dress and other miscellaneous items, can be called to be the uniform of the employees to be used during the performance of duties of office or employment of a profit. The CIT(A) has already adopted a liberal attitude in estimating a sum of Rs. 10,000 per employee as a corporate attire allowance and had allowed the exemption under section 10( 14 ), read with rule 2BB(1)( f ) of the Income-tax Rules. Since the CIT(A) has already granted sufficient relief to the assessee, no further relief can be granted to h ..... X X X X Extracts X X X X X X X X Extracts X X X X
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