ACIT Circle-47 (1), New Delhi V. John Triplett, New Delhi

ITA 3152/DEL/2008

• Counselvise Citation: [2009] 114 COUNSELVISE.COM (IT) 9592 (ITAT-DELHI)
• Duration Of Justice: 11 month(s) 14 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 30-09-2009
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: D
• Next Hearing Date: 17-09-2009
• Assessment Year: 2003-2004
• Appeal Filed On: 16-10-2008
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: BK GUPTA

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCH D NEW DELHI BEFORE SHRI G.E. VEERABHADRAPPA : VICE PRESIDENT; A ND SRHI C.L. SETHI : JUDICIAL MEMBER ITA NO. 3152/DEL/08 ASSTT. YR: 2003-04 ACIT, CIR. 47(1), VS. MR. JOHN TRIPLETT C/O PAR SONS NEW DELHI. BRICKERHOFF INTERNATIONAL INC. NBCC PLACE BHISHMA PITAMAH MARG, PRAGATI VIHAR, NEW DELHI. PAN/GIR NO. ACKPT6317P ( APPELLANT ) ( RESPONDENT ) APPELLANT BY : SHRI B.K. GUPTA SR. DR RESPONDENT BY : SHRI SANAT KAPOOR ADV. O R D E R PER G.E. VEERABHADRAPPA, V.P: THIS APPEAL, BY THE REVENUE , ARISES OUT OF THE OR DER DATED 30-07-2008 OF THE CIT(APPEALS)-XXX, NEW DELHI FOR A.Y. 2003-04 . 2. FOLLOWING GROUNDS HAVE BEEN RAISED BY THE REVENU E : ON THE FACTS AND IN THE CIRCUMSTANCES OF T HE CASE AND IN LAW, THE LD. CIT(A) HAS ERRED IN DELETING THE ADDITIONS MADE BY THE AO IN RESPECT OF :- I) INCLUSION OF TAX BORNE BY THE EMPLOYER, IN SALA RY FOR THE PURPOSES OF CALCULATING PERQUISITE VALUE FOR RENT FREE ACCOM MODATION PROVIDED BY THE EMPLOYER RESULTING IN ADDITION OF R S. 84,270/-. ITA 3152/DEL/08 ACIT VS. MR. JOHN TRIPLETT 2 II) GROSSING UP OF TAX BORNE BY THE EMPLOYER AMOUN TING TO RS. 34,60,451/- BY REJECTING THE PLEA OF THE ASSESSEE F OR EXEMPTION U/S 10(10CC) OF I.T. ACT. 3. AT THE VERY OUT SET THE LEARNED COUNSEL FOR THE ASSESSEE SUBMITTED THAT BOTH THE ISSUES, RELATING TO RENT FREE ACCOMMODATIO N AND GROSSING UP OF TAX BORNE BY THE EMPLOYER, ARE SQUARELY COVERED IN FAVO UR OF THE ASSESSEE BY THE DECISION OF SPECIAL BENCH OF THE ITAT IN THE CASE OF RBM CORPORATION & OTHERS 109 ITD 141 (DEL.), WHEREIN IT HAS BEEN HELD THAT THE VALUE OF THE PERQUISITE IS NOT PART OF THE TOTAL INCOME OF THE E MPLOYEE IN VIEW OF SEC. 10(10CC) OF THE ACT AND CANNOT BE TAKEN INTO CONSID ERATION FOR WORKING OUT THE VALUE OF THE RENT FREE ACCOMMODATION PROVIDED T O THE EMPLOYEE. THE LEARNED COUNSEL SUBMITTED THAT THE SAME VIEW HAS AL SO BEEN TAKEN BY THIS TRIBUNAL IN THE FOLLOWING CASES: (I) ITA NO. 204/DEL/07 MR. FUMIO GOTO VS. ACIT & ITA NO. 478/DEL/07 MARUBENI ITOCHU STEEL INC. INDIA VS. ACIT DATED 30- 11-2007; AND (II) ITA NO. 80/DEL/2009 ACIT VS. FUMIO GOTO DATED 4 -9-2009. 4. COPIES OF TRIBUNALS ORDERS HAVE ALSO BEEN PLAC ED ON RECORD. THE LEARNED COUNSEL SUBMITTED THAT ORDER OF CIT(A) BEIN G IN CONSONANCE WITH THE AFORESAID ORDERS OF THE TRIBUNAL, THE SAME SHOULD BE UPHELD. THE LEARNED DR WAS FAIR ENOUGH TO ADMIT THE AFORESAID FACTUAL P OSITION. ITA 3152/DEL/08 ACIT VS. MR. JOHN TRIPLETT 3 5. WE HAVE HEARD BOTH THE PARTIES AND HAVE GONE THR OUGH THE ENTIRE MATERIAL AVAILABLE ON RECORD. IN VIEW OF THE ABOVE ADMITTED FACTUAL POSITION, RESPECTFULLY FOLLOWING THE SPECIAL BENCH DECISION IN THE CASE OF RBM CORPORATION (SUPRA), THE ORDER OF CIT(A) ON BOTH TH E ISSUES IN QUESTION IS UPHELD. 6. IN THE RESULT, REVENUES APPEAL IS DISMISSED. ORDER PRONOUNCED IN OPEN COURT ON _____-9-2009. (C.L. SETHI ) ( G.E. VEERABHADR APPA ) JUDICIAL MEMBER VICE PRESIDENT DATED: _____-09-2009. MP COPY TO : 1. ASSESSEE 2. AO 3. CIT 4. CIT(A) 5. DR