Professional Tax

[bhaveshformals]

Dear all

The Delhi HC in CIT vs NHK Japan Broadcasting Corpn. 291 ITR 331 has
said that that Citizens Tax paid by the employer out of the salary of
the employee is a diverison of tax.

On reading the case it seems that the Citizens Tax is very similar to
the Professional Tax paid by us. So can we also claim that it is a
diversion of income and hence no tax is to be paid on it.

bhavesh savla

[patil]

cant find case  ???. can u check citation pl.

Patil.

[bhaveshformals]

The citation is correct Sir. Anyways I am attaching the judgment.

[patil]

thanks very much. I agree it makes big case for arguing that profession tax is not chargeable to tax. thanks for same.

Patil.

[bhaveshformals]

right now we have a deduction for P.T. Can we argue on the basis of this judgment that P.T. is not chargeable to tax but we can still get a deduction for the P.T. paid or will Section 14A stand in the way?