COMMISSIONER OF INCOME TAX Vs. WIPRO SYSTEMS

JUDGEMENT

(1.) THE revenue has come up in this appeal challenging the legality and correctness of the order passed by the Income Tax Appellate Tribunal, Bangalore Bench in ITA No. 1024/Bang./1997, dated 20 -8 -2003 for the assessment year 1994 -95. The appeal is admitted on the following substantial questions of law: (i) Whether the Tribunal was correct in setting aside the order of the Assessing Officer that the assessee is in default under Section 201(1) of the Act and consequently liable to pay interest under Section 201(1A) of the Act on account of the assessee failing to deduct tax at source from its employees in respect of perquisites provided, i.e., attire allowance, club membership and travel accessories allowance? (ii) Whether the Tribunal was correct in holding that the attire allowances, club membership and travel accessory allowance paid to the employees cannot be treated as perquisite under Section 17 of the Act?

(2.) THE question is, whether the attire allowance, club membership fee paid to the employees of the assessee can be treated as perquisite or not?

(3.) WITH the abovesaid observations, appeal is disposed of.