HC : Concessional education facility not perquisite prior to 2001- amendment to Rule 3, TDS inapplicable

Gujarat HC reverses ITAT order, holds that payment to education society for recouping deficit in payment of tuition fees of employees' children does not amount to perquisite for AY 2000-01 and 2001-02; Notes that the children of the employees were studying in that Education Society and were paying fees at a subsidized rate and burden borne by assessee per child per month never exceeded Rs. 1000; Observes that Rule 3 (e) prior to amendment in 2001 referred to 'free' educational facility and the word 'concessional' was inserted by 2001 amendment only for subsequent period; Thus, holds that payment to recoup such deficit does not amount to perquisite in the hands of employees and "Assessee cannot be said to be a defaulter ... and liable under Section 201 [1] of the I.T Act or to make payment of interest leviable under Section 201 [1A] of the Act":HC