COMMISSIONER OF INCOME TAX Vs. C L RAE

JUDGEMENT

(1.) This is an appeal against the order of the Income Tax Appellate Tribunal, dated 05.06.2009, whereby the miscellaneous application being M.A No. 240/Del./05, filed by the Revenue, seeking rectification of the order of the Tribunal dated 03/08/2001, in ITA No. 1652/Del/1995, was dismissed.

(2.) The respondent/assessee was an employee of G.E.C. Turbine Generators India Ltd. (GECATGL) working as Assistant in Mechanical Commissioning at its Rihand site. For the assessment year 1990-91, the assessee filed the return, declaring income of about Rs. 15,90,942/-. During assessment proceedings, the Assessing Officer noticed that a search under Section 132 of Income Tax Act, hereinafter refer to as "the Act" had been conducted at the business premises of the company in which the assessee was employed. He found that the evidence seized during the search established that the salary paid to the assessee had not been fully and truly disclosed by the employer company. Based upon the material sized during search, the settlement application filed by the employer company and the order of CIT (A) in respect of earlier orders, the Assessing Officer made certain additions to the salary disclosed by the assessee. The additions comprised Rs 76,738/- on account of overtime, Rs 3, 36,809/- on account of overheads being 45% of the salary and Rs. 28,704/- on account of perquisites. He also made addition of Rs. 13,55,167/- on account of tax perquisites.

(3.) In the appeal filed by the assessee, the CIT(A), relying upon the decision of his predecessor in case of 9 other employees of the same company whose cases were identical to the case of the assessee and also relying upon the order of the Tribunal in the case of 21 employees of the same company, having identical facts, deleted the additions made by the Assessing Officer.