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TMI Blog2017 (9) TMI 469X X X X Extracts X X X X X X X X Extracts X X X X ..... cided in favour of the assessee by the decision of the Special Bench of Delhi Tribunal in the case of RBF Rig Corporation (2007 (11) TMI 334 - ITAT DELHI-F). The issue stands covered in favour of the assessee by in the case of Sedco Forex International Drilling Inc. & Others (2012 (8) TMI 426 - Uttarkhand High Court) as held payment of tax on account of salaries of the employees not by way of monetary payment to the employees concerned, but for or on their account to the Department and the same being one of the perquisites included in Section 17(2), such payment was to be excluded from the income of the employees. Merely because SLP of the department is pending before the Hon’ble Supreme Court is no ground to take a contrary view agains ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... by the employer has been added to the income after claiming exemption under section 10(10CC) of the Act. Out of a total tax perquisite of ₹ 1,53,75,770 exemption under section 10(10CC) at an average rate of tax has been claimed at ₹ 83,52,944 and the balance amount of ₹ 70,22,825 has been added to the income. The A.O. issued a show cause notice to the assessee as to why the claim of exemption under section 10(10CC) may not be denied as tax paid by the employer is a monetary benefit arising to the assessee. The assessee submitted before A.O. that the primary issue being whether tax paid by the employer is a perquisite not provided by way of a monetary payment and hence, would qualify for exemption under section 10(10CC) ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ed as under : Findings/Determination: 4.1 The Assessing Officer has noted while analyzing the amendment and legislative history regarding introduction of Section 10 (10CC), at Para 3.1 last portion thereof:- From the above legislative history regarding introduction of Section 10(10CC) in the Income-Tax Act, it is inferred that the perquisites in respect of which the provisions of Section 10(10CC) have been introduced are the perquisites which need to be valued according to the basis of valuation prescribed in Rule 3 and not a tax perquisite which does not need valuation. It can certainly not be any ones case that a tax payment also needs to be valued to be described in terms of money or rupee. 4.2. The ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nt to the employees concerned, but, for or on, their account would be a perquisite under section 17(2)(iv) of the Act, and such payment is to be excluded from the income of the employees under section 10(10CC) of the Act.: 4.3. In view of the above, the appellant succeeds with regard to Ground Nos. 1 till 7. Ground No.8 becomes academic. Ground No.9 is consequential and stands decided in favour of the assessee. Ground No.10 being against initiation of penalty u/s 271(1)(c) of the I.T. Act, 1961 is premature and needs no adjudication. Ground No.11 is general. In view of the above, the appellant succeeds on the substantive issue. 4. The Ld. D.R. contended that the department has not accepted the decision of Hon ble Utt ..... X X X X Extracts X X X X X X X X Extracts X X X X
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