Case Law Details
Employees Provident Fund Organisation Vs DCIT (ITAT Bangalore)
ITAT Bangalore held that TDS are not applicable as EPFO have not provided rent free accommodation to employees, as employees are paying license fees as per Rules of Govt. of India.
Facts- The assessee is an autonomous body and is a creation under the statute, “Employees Provident Fund Organisation and Miscellaneous Provisions Act 1952”. AO observed that assessee has provided its employees with unfurnished accommodation, and was of the view that assessee was required to deduct TDS on the perquisite value in respect of such accommodation provided to its employees. Accordingly, show cause notice was issued.
AO after considering the submissions of the assessee treated the assessee as “assessee in default” for non-deduction of TDS on perquisite value of unfurnished accommodation provided to its employees, and computed the default along with interest u/s. 201/1(A) of the act, for all the years under consideration. CIT(A) dismissed the appeal. Being aggrieved, assessee has preferred the present appeal.
Conclusion- Held that assessee cannot be held to be an assessee in default for the reason that it is an organisation under a Statute enacted by the legislature. Further that as the assessee collects license fee in the form of House Rent Allowance from its employees against the unfurnished accommodation and therefore, the provisions of TDS will not apply under such circumstances.
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