VALUATION METHO- DOLOGY & NOT ASSESSEE, AT FAULT

The Delhi Income-tax Tribunal has held that where valuation of perquisite determined by the assessee relying on interpretation of Taxman’s Direct Taxes Ready Reckoner, the assessee could not be deemed to be an assessee-in-default and consequently, interest under section 201(1A) could not be levied though the valuation methodology was held not justified. The tribunal held that the assessee had some basis (though that interpretation might not have been correct) on which the decision was taken not to deduct tax on the impugned amount, and unless it was shown that there was something more than mere reliance upon the reckoner, the assessee could not be held to be an assessee-in-default, and consequently, interest under section 201(1A) could not be levied.