K. PARTHASARATHY Vs. COMMISSIONER OF INCOME TAX-VII

JUDGEMENT

(1.) HEARD the learned counsel appearing for the petitioner, as well as the learned counsel appearing on behalf of the respondents.

(2.) IT has been stated that the petitioner is working, as an Accounts Executive, in Infosys Technology Limited, Chennai, and he is an assesee on the files of the second respondent. The petitioner had filed the original return of income, for the assessment year 1999 -2000, on 25.6.1999, and the return filed by the petitioner had been duly processed by the Assessing Officer concerned.

(3.) IT has been further stated that the demand raised by the Deputy Commissioner Income Tax, TDS, Bangalore, had been challenged before the Commissioner of Income Tax (Appeals) IV, Bangalore. The said appeal had been rejected by the Commissioner of Income Tax (Appeals), by an order, dated 12.9.2000. Thereafter, a further appeal had been filed by the petitioner, before the Income Tax Appellate Tribunal, Bangalore, in I.T.A.No.818 -820/2000. An order had been passed by the appellate Tribunal, on 28.6.2002, holding that allotting of shares to employees did not amount to a perquisite and therefore, there was no liability under the Act to deduct tax at source. The said order had been challenged by the department, before the Karnataka High Court, and thereafter, before the Apex Court. However, the order of the Income Tax Appellate Tribunal, Bangalore, had been confirmed. Hence, the petitioner is entitled to the refund of the amounts deducted from his salary, as tax, along with the interest accrued thereon.