| Case ID |
37302342-98a3-4358-8427-d3f8d7f7eb59 |
| Body |
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| Case Number |
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| Decision Date |
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| Hearing Date |
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| Decision |
The court held that the recovery of tax on perquisites related to the supply of furniture at a concessional rate by the bank was illegal and unjustified. The court found that there was no concession being given to the employees as the bank charged all employees uniformly for the furniture provided. The approach of the department to use market rates to calculate concessional rates for tax purposes was not approved. The court ruled that since there was no perquisite in this case, the deductions made by the bank were not sanctioned under the law. The court directed the bank to adjust any deductions already made and not to deduct any further amounts except for standard deductions. |
| Summary |
In the landmark case involving the All India Vijaya Bank Officers Association against Vijaya Bank, the Calcutta High Court addressed the legality of tax deductions on perquisites attributed to the provision of furniture at a supposed concessional rate. The court scrutinized the Income-tax Act, particularly Section 17, which deals with salaries and perquisites. It was determined that the bank's uniform charging of rent for furniture did not constitute a concession. The ruling emphasized that without a concession, there could be no perquisite recognized under the law, thus any tax levied was unjustified. This case highlights the importance of equitable treatment among employees regarding taxation and the necessity for employers to adhere strictly to legal definitions of perquisites. The decision underscores the court's position against arbitrary tax deductions and sets a precedent for similar cases in the future, ensuring that all employees are treated fairly under tax laws. |
| Court |
Calcutta High Court
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| Entities Involved |
Not available
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| Judges |
KALYAN, JYOTI SENGUPTA, J.
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| Lawyers |
R.K. Murarka
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| Petitioners |
All India Vijaya Bank Officers Association
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| Respondents |
Vijaya Bank
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| Citations |
2001 SLD 2771,
(2001) 250 ITR 500
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| Other Citations |
Officers' Association, Bhilai Steel Plant v. Union of India [1983] 139 ITR 937/[1981] 6 Taxman 281 (MP),
ITO v. All India Vijaya Bank Officers' Association [1997] 225 ITR 37 (Cal.),
Steel Executives Association v. Rashtriya Ispat Nigam Ltd. [2000] 241 ITR 20/ 109 Taxman 127 (AP)
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| Laws Involved |
Income-tax Act, 1961
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| Sections |
17
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