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TMI Blog2008 (1) TMI 23X X X X Extracts X X X X X X X X Extracts X X X X ..... e of taxable income for the deduction of tax at source u.s. 192 of the I.T. Act, 1961? (ii) Whether on the facts and in the circumstances of the case the Tribunal was justified in law in holding that L.T.A. paid by the assessee to their employees at the fixed rate is exempt u.s. 10(5) only on the basis of declaration field by the employees without verifying actual expenditure incurred by the employee & maintaining records thereof and not including the same for the purpose of taxable income for deduction of tax at source u.s. 192 of the I.T. Act, 1961?" 2. The present appeal is in respect of assessment years 1995-96. That appeal was heard along with several other appeals which were disposed of by common order dated 6.6.2001. Th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... here the assessee had blindly accepted the declarations and for the aforesaid reasons, considering that the employer is expected to deduct tax only on estimated income and on facts on recording held that the assessee has fairly estimated the income and for that reasons, quashed the demands raised. In our opinion, these are purely findings of fact recorded by the tribunal with which no fault can be found. 4. Apart from that our attention has been invited to the judgment on the similar issue in ITA No. 104 to 107/BOM/90 in Glaxo India Limited Vs. First Income Tax Officer, T.D.S. Circle, Bombay disposed of on 12.6.1995. In that case the issue pertains to short deductions in regard to the estimation of drivers salary as also of domestic ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ent to section 201 has been applied retrospectively, the test whether the assessee acted bona fide is still available as what the assessee under Section 192(1) is called upon, is to deduct tax "on the estimated income". In our opinion, the facts in Glaxo (supra) would clearly apply. On behalf of the Revenue, the learned counsel had brought to our attention the judgment of this court in the case of Benett Coleman & Co. Ltd. Vs. V.P. Damle, Third Income Tax Officer, TDS Circle, Bombay, 157 ITR 812. In that case the assessee had deducted tax but failed to deposit the same. It is in this context that the court had observed that Section 201(1)(a) of the Income Tax Act makes payment of simple interest mandatory. That case is clearly disting ..... X X X X Extracts X X X X X X X X Extracts X X X X
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