COMMISSIONER OF INCOME TAX Vs. JAYDEV H.RAJA

JUDGEMENT

(1.) According to the revenue the following questions of law arise out of the order of the ITAT dated 30-3-1999.

(2.) The respondent-assessee a resident but not ordinarily resident individual was an employee of Coca-Cola Inc. USA and had income under the head "Salaries", Under the Tax Equalization Policy framed by the said company, the assessee's tax liability arising out of his foreign assignment was to be borne by the company but restricted only to the extent of liability arising out of such foreign assignment. As the assessee had foreign assignment in India during the assessment year in question, the company under its tax equalization policy was liable to reimburse the tax payable on total salary which the assessee was entitled to receive in India.

(3.) In the assessment year in question the assessee had returned income of Rs. 1.13 crores and paid tax there on the said income at Rs. 50.00 lakhs. Since the assessee had received Rs. 77.00 lakhs in India and the tax payable thereon was Rs. 35.00 lakhs which was to be reimbursed by the employer, the assessee had included Rs. 35.00 lakhs to the salary income of Rs. 77.00 lakhs and offered Rs. 113.00 lakhs (round figure) to tax. Though tax on Rs. 113.00 lakhs at Rs. 50.00 lakhs was paid, the assessee claimed that out of Rs. 50.00 lakhs only Rs. 35.00 lakhs was includible in the total income and not the balance amount of Rs. 15.00 lakhs. The Assessing officer rejected the contention of the assessee, CIT(A) upheld the decision of the Assessing Officer.