DILEEPKUMAR BANKEYLAL PRADHAN,BHARATPUR vs. THE ITO, WARD-4(1)(7), VADODARA

ITA 713/AHD/2024Status: DisposedITAT Ahmedabad11 February 2026AY 2018-19Bench: PER DR. B.R.R. KUMAR (Vice President)4 pages
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What did the Tribunal hold?

The Tribunal, relying on a previous Coordinate Bench order, held that an employer's contribution to an LIC annuity policy is not taxable as a perquisite under Section 17(2)(v) if the employee does not acquire a vested right in the amount in the assessment year. Since the assessee had no such vested right in AY 2018-19 and had already offered the annuity income on an accrual/receipt basis, taxing the contribution would amount to impermissible double taxation. The employer's payment was not considered income due, paid, or allowed to the employee.

What were the facts?

The assessee filed an income tax return for AY 2018-19. The Assessing Officer (AO) disallowed a claim for LIC annuity payment of Rs.15,00,000/-, along with associated tax of Rs.4,50,000/-, treating it as taxable income. The Commissioner of Income Tax (Appeals) subsequently partly allowed the assessee's appeal.

What were the issues?

Whether an employer's contribution to an LIC annuity policy, where the employee has no vested right in the assessment year, constitutes a taxable perquisite in the hands of the employee.

Which sections of the Income-tax Act were involved?

Section 142(1),Section 17(2)(v),Section 15

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Cases cited in this judgment(3)Show list

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Income Tax Appellate Tribunal, “SMC” BENCH, AHMEDABAD

Before: DR. B.R.R. KUMAR, VICE- & SHRI SENTHIL KUMAR

For Appellant: Shri Rajeevkumar Goyal, AR
For Respondent: Ms. Ketaki Desai, Sr.DR
Hearing: 10/02/2016Pronounced: 11/02/2016

PER DR. B.R.R. KUMAR, VICE-PRESIDENT:

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Delay condoned. This appeal is filed by the Assessee against the appellate order dated 17/01/2024 passed by the Commissioner of Income Tax(A), National Faceless Appeal Centre (NFAC), Delhi [hereinafter referred to as “the Ld. CIT(A)”] relating to the Assessment Year (AY) 2018-19. 2. The assessee has raised the following grounds of appeal:

“1. In light of the facts and circumstances of the case, it is contended that the Ld. Commissioner of Income-tax (Appeals) erred in neglecting to address the issue concerning the failure of the Ld. Assessing Officer to afford the appellant an opportunity to be heard.

2.

Furthermore, it is submitted that, both on the merits a

The order continues below.

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