Case Law Details
Adaab Hotels Ltd Vs DCIT (ITAT Delhi)
ITAT Delhi held that direction by CIT(A) to AO to take appropriate action for not deducting TDS from the perquisite in respect of interest free loans given to directors and to take appropriate action to tax the perquisites u/s. 17 of the Act is in excess of jurisdiction conferred by section 251 hence deleted.
Facts- The appellant mainly contended that CIT(A) has erred in holding that interest free loans given to directors are perquisites u/s 17 of the Income Tax Act read with Rule 3(7)(i) of the Income Tax Rules’ 1962 and also directing the learned Assessing Officer to take appropriate action so as to tax the perquisites under section 17 of the Act read with Rule 3(7)(i) of the Income Tax Rules in the hands of the directors in respect of interest free loans given to directors.
Further, it is also contended that CIT(A) has erred in directing AO to take appropriate action for not deducting TDS from the perquisites in respect of interest free loans given to directors.
Conclusion- In the case in hand after deciding the grounds the CIT(A) directed the AO to take appropriate action for not deducting TDS from the perquisite in respect of interest free loans given to directors and to take appropriate action to tax the perquisites u/s. 17 of the Act. In our considered view these directions were unwarranted and uncalled for as the issue was not before the CIT(A) no such power has been granted by the Act, therefore, the impugned direction of the CIT(A) is held to be in excess of the jurisdiction conferred by section 251 of the Act and hence same are directed to be deleted.
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