9911796707
TMI Blog2016 (5) TMI 693X X X X Extracts X X X X X X X X Extracts X X X X ..... ces covered under these circulars?" 2. "Whether on the facts and in the circumstances of the case the Tribunal is right in law in relying on the decision of the Tribunal, Kolkota bench in the case of Saptarshi Ghosh?" 3. "Whether on the facts and in the circumstances of the case the Tribunal is right in law in holding that per-diem allowance paid to the employees as a part of the salary is not liable to TDS under section 192?" 2. We have heard Mr.K.V. Aravind, learned counsel appearing for the appellants. 3. We may record that the Tribunal in the impugned order while considering aforesaid aspect h as observed at paragraphs 4.3.1 to 4.3.3 as under:- "4.3.1 We have heard the rival submissions and perused and carefully considered the m ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ficial trips to USA and Europe to be reasonable and that the same would be covered as exempt under Section 10(14) of the Act. In the impugned order for Assessment Year 2009-10 dated.25.9.2014, the last of the impugned orders to be passes, the learned CIT(Appeals) held as under at 3 to 5 as under:- "3.0 I have carefully considered the facts, the appellant's submissions and perused the impugned order. I agree with the argument of Id. A.R. that the per diem allowance paid to its employees qualifies for exemption under Section 10(14)(i) of the Act r.w. Rule 2BB(1). Clause (b) of Rule 2BB(1) refers to any allowance to meet the ordinary daily charges incurred by an employee on account of absence from normal place of duty. There is no monetary l ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... , in the sense that proviso to section 10(5) also puts a ceiling that such allowance shall not exceed the actual expenditure. In any case, the allowance cannot be denied exemption under section 10(14) and assessee-employer said to be in default for failure to deduct tax on the ground of absence of proof of such actual expenses on food, travel, laundry incurred by the employees, while performing duties in a foreign country. 3.2 In view of the above reasons, also accepted in case of appellant for Assessment year 2011-12 (appellate order dated 17.10.2013) where it was held that the per diem allowance is reasonable at $ 50 to $ 75 for the US and Europe, and would be covered under Section 10(14). The appellant could not be said to be indefault ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he allowances are highly disproportionate or ureasonable to the salary received or nature of duties performed. We also concur with the findings of the learned CIT(Appeals) that, in the light of the circulars issued by the Ministry of External Affairs, Govt. of India dated 11.1996 and 21.9.2010(supra), the per diem allowance of $ 50 to $ 75 paid to employees on their official trips to USA and Europe are reasonable and would be exempt under Section 10(4) of the Act. In this view of the matter, we uphold the decisions of the learned CIT(Appeals), that since the assessee has been held to be not in default under Section 201(1) of the Act with regard to per diem allowances paid, interest under Section 201(A) of the act is also consequently not ch ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... use(2) of section 17, specifically granted to meet expenses wholly, necessarily and exclusively incurred in the performance of the duties of an office or employment of profit, [as ma y be prescribed], to the extent to which such expenses are actually incurred for that purpose; (ii) any such allowance granted to the assessee either to meet his personal expenses at the place where the duties of his office or employment of profit are ordinarily performed by him or at the place where he ordinarily resides, or to compensate him for the increased cost of living, [as may be prescribed and to the extent as may be prescribed]: Provided that nothing in sub-clause(ii) shall apply to any allowance in the nature of personal allowance granted to the ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
