2017 (9) TMI 469

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..... ployees by employer is to be excluded from the income of the employees under section 10(10CC) of the Act. 2. On the facts and in the circumstances of the case, the Ld. CIT(A) has erred in determining payment of tax, payable on salaries of the employees by employer is to be excluded from the income of the employees under section 10(10CC) of the Act, even after determining the such payment as monetary in nature and considering the same as exempted under section 10(10CC), which exempts only non-monetary payments." 2. Briefly the facts of the case are that during the course of assessment proceedings, from the computation of income received from General Electric International Inc., it has been found that the assessee has received monetary and .....

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..... case of Sedco Forex International Drilling Inc. & Others (TS-603-HC- 2012 (UTT) ] as well as the ruling dated 31st July, 2013 issued by Hon'ble Delhi High Court in the case of CIT vs. Yushio Kubo and others. The A.O. however, noted that department has not accepted these decisions and SLPs are pending. The A.O. accordingly disallowed the exemption under section 10(10CC) of the Act and made addition of Rs. 83,52,944. 3. The assessee reiterated the same submissions before the Ld. CIT(A) and it was submitted that the issue is covered in favour of the assessee by the above judgments. The Ld. CIT(A) considering the issue in the light of decision of Hon'ble Uttarakhand High Court in its decision dated 30th July, 2012 in the case of Sedco Forex In .....

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..... yee shall be entitled to exclude from his total income, the tax paid by employer on. perquisites, within the meaning of section 17(2) of the Act, not provided by way of monetary payment to him. * The employer by entering into agreement with the employee had taken over an obligation to pay income-tax payable by the employees. * Such tax paid by the employer will qualify as perquisite within the meaning of sub-clause (w) of section 17(2) as it is a sum paid in respect of an obligation which, but for such payment, would have been payable by the employees. * Tax paid on account of the employees is certainly a monetary payment. The same is not paid to the employee, but on his account to the income tax department. * Therefore, payment .....

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