TAKENAKA S Vs. COMMISSIONER OF INCOME TAX

JUDGEMENT

(1.) THE Income-tax Appellate Tribunal, Bangalore (hereinafter referred to as the Tribunal), has referred the following question of law along with the statement of the case to this court for its opinion :

(2.) THE reference has been made at the instance of the assessee relating to the assessment year 1984-85. Shortly stated the facts are :

(3.) IT was conceded before the Tribunal as well as before us by the assessee that the amount of Rs. 34,306 constituted perquisite received by the assessee. IT is contended by counsel for the assessee that the amount of tax alone should be added to the amount of net salary received by the assessee. The assessee objected to the procedure of computing the gross salary on the basis of the principle of tax on tax. According to him, the assessee could not be made to pay tax on the net income arrived at after adding the amount of tax to the net income already arrived at by the Income-tax Officer, because, it would amount to levy of tax on the tax already paid by him.