S THIGARAJAN Vs. ASST COMMISSIONEROF INCOME TAX

JUDGEMENT

(1.) Since common questions of law and that of fact arise for decision making, with the consent of the Learned Counsel for the parties, the petitions are clubbed together, finally heard and are disposed of by this common order.

(2.) The petitioners when granted certain number of stock at Re. 1 per stock, subject to certain conditions under the employees stock option scheme, by the employer M/s Infosys, did not amount to a taxable perquisite and the value of the shares were not disclosed as taxable income in the original returns of income filed under the Income Tax Act, 1961, for short Act', as follows:

(3.) The Deputy Commissioner of Income Tax (TDS) by order dated 7-10-1999 held that the shares being perquisites, their value required to be disclosed and failure of the employer M/s Infosys to deduct Tax at Source (TDS) from the salaries of its employees, initiated action against the employer, who in turn, on demand, without prejudice, deducted the tax and remitted the same to the department, and issued to the petitioners revised Form No. 16 to claim credit for the decution. This was followed by the petitioners filing revised returns, though beyond the time stipulated under Section 139 of the Act.