Case Law Details
The company agreed to pay income-tax on behalf of Mr. Roger David Arnold and the question was whether, in view of the aforesaid agreement, the tax had to be grossed up at multiple stages or only at single stage for working out the salary liable to be taxed u/s 15 of the Income-tax Act, 1961 (the Act)?
The only inescapable conclusion is that the salary of the assessee has to be calculated on the basis of multiple grossing up method.
The tax paid by the company was part and parcel of the salary and not any sum outside the salary or independent of salary. Thus, the tax liability of the assessee was nothing but the salary and not anything outside it. Therefore, this payment of tax on behalf of the assessee will be monetary payment. In view thereof, the provision contained in section 10(10CC) is not applicable for the reason that like salary, this payment is also a monetary payment forming part of the salary.
INCOME TAX APPELLATE TRIBUNAL
DELHI BENCH ‘H’ DELHI
Please become a Premium member. If you are already a Premium member, login here to access the full content.
