COMMISSIONER OF INCOME TAX Vs. MAX INDIA LTD

JUDGEMENT

(1.) By this common judgment, seven appeals bearing Nos.1174, 1165, 1166, 1169,1173, 1176 and 1178 of 2006 filed by the Revenue are disposed of since common question of law is involved in these appeals.

(2.) All these appeals arise out of the consolidated order dated 23rd December, 2005 passed by the Income Tax Appellate Tribunal (in short as Tribunal) in ITA No.4685(Del)/2000 for the assessment years 1999-2000, ITA No.596(Del)/2002 for the financial years 1989-90 to 1997-98 and ITA Nos.3815- 3818(Del)/2004 for the assessment years 1995-96 to 1998-99.

(3.) M/s Max India Ltd., the Assessee in this case under its scheme provided to its officers cars and hard furnishing items. Under the said scheme, the Assessee purchased cars and/or hard furnishing items in its name subject to the limit as indicated in the scheme framed by the Assessee and gave the same to its officials. Further, under the said scheme, the Assessee after the prescribed period allowed its officials to purchase the said items and/or agreed to replace the items. The Assessee sold to its employees hard furnishing items and cars at a price mutually agreed to. In some of the cases, the agreed prices were less than the written down value of the items. The Assessing Officer held that the difference in the sale price of the items and the written down value of the items in the books of accounts of the Assessee was perquisite in the hands of its employees and the Assessee had not deducted the required TDS on the said perquisite value. Accordingly, the Assessing Officer initiated proceedings under Section 201/201(1A) of the Income Tax Act, 1961(hereinafter referred to as Act) and computed the short deduction of tax under Section 201 of the Act at Rs.3,27,373/- and interest thereon under Section 201(1A) of the Act at Rs.2,47,860/- totaling to Rs.5,75,233/- for the assessment years 1990-91 to 1998-99.