Allowing the appeal of the assessee the Court held that ;Since contributions made by assessee were to recoup deficiency suffered by said Educational Society for meeting its educational requirements and burden borne per child per month by assessee had never crossed Rs. 1000, no perquisite could be said to be arose in hands of employees of assessee- legislation amended rule 3(e) only for period subsequent to 2001, to include concessional education facility, assessee could not be held liable to recover tax for assessment years prior to such amendment for contribution of concessional facility given to employees- Not liable to deduct tax at source. (AY. 2000-01, 2001-02)
Gujarat Co-operative Milk Marketing Federation Ltd. v. ITO (2018) 257 Taxman 311 / 172 DTR 57 / 305 CTR 988/ (2020) 424 ITR 247(Guj.)(HC)
S. 192 : Deduction at source – Salary – Perquisite –Since contributions made by assessee were to recoup deficiency suffered by said Educational Society for meeting its educational requirements and burden borne per child per month by assessee had never crossed Rs. 1000, no perquisite could be said to be arose in hands of employees of assessee- legislation amended rule 3(e) only for period subsequent to 2001, to include concessional education facility, assessee could not be held liable to recover tax for assessment years prior to such amendment for contribution of concessional facility given to employees- Not liable to deduct tax at source.[ S.17(2), 201(1)]