HIGH COURT OF DELHI

Commissioner of Income-tax (TDS)

v.

Delhi Public School

MADAN B. LOKUR AND S. MURALIDHAR, JJ.

IT APPEAL NO. 1117 OF 2007

NOVEMBER 22, 2007

Section 17(2) of the Income-tax Act, 1961, read with rule 3(5) of the Income-tax Rules, 1962 - Salaries - Perquisites - Assessment year 2003-04 - Assessee-school used to give free education to children of staff - Assessing Officer took, cost of education for other students in same school, as perquisite value in hands of employee and levied tax on assessee accordingly - Tribunal held that later part of rule 3(5) which required Assessing Officer to determine cost of education in a similar institution in or near locality was completely overlooked by Assessing Officer and, therefore, he proceeded on an entirely incorrect proposition - Whether Tribunal was justified - Held, yes