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TMI Blog2018 (10) TMI 725X X X X Extracts X X X X X X X X Extracts X X X X ..... . In that case the liability u/s. 192 cannot be brought upon the appellant. - Order of CIT(A) confirmed - Decided against the Revenue. - I.T.A No. 1174/Kol/2017 And C.O No. 72/Kol/2017 - - - Dated:- 5-10-2018 - Shri J. Sudhakar Reddy, Accountant Member And Shri S.S. Viswanethra Ravi, Judicial Member For The Appellant : Shri S. Dasgupta, Addl. CIT, ld.DR For The Respondent : Shri Anil Kochar, Advocate, ld.AR ORDER Shri S.S. Viswanethra Ravi, JM: This appeal by the Revenue and corresponding cross objection by the Assessee are directed against the order dt. 03-03-2017 passed by the Commissioner of Income Tax (Appeals), 24, Kolkata for the A.Y 2012-13. 2. Ground no. 1 is relating to deletion of addition made on account payment for medical expenses in the facts and circumstances of the case. 3. The ld. DR submits that the assessee has incurred medical expenses of ₹ 1,93,36,000/- for the treatment and incidental travelling expenses in a foreign hospital for its employee, Shri S.K. Dugar, who was earlier one of the directors of the assessee. The said expenditure incurred for medical treatment of an employee incurred outside India by its emp ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tnotes of section 17(2) of the Act. 7. Further, the ld. AR referred to frequently asked question (FAQ) updated on 30-09-2013 at Q No. 6 How much foreign exchange can be drawn for medical treatment abroad? The ld.AR submits that AD Category-I Banks and AD Category-II, may release foreign exchange upto USD 100000 or its equivalent to resident Indian for medical treatment abroad on self-declaration basis, without insisting on any estimate from a hospital/doctor in Indian/abroad. A person visiting abroad for medical treatment can obtain foreign exchange exceeding the above limit, provided the request is supported by an estimate from a hospital/doctor in India/abroad. The ld. AR submits the total estimated medical treatment of its employee was about 450,000( Singapore dollars)and referred to page-10 of the paper book. The assessee is exceeding the above limit as provided under FAQ and made request for purchase of 800000 Singapore dollars in terms of para 2(c ) of RBI Circular No.RBI/2011-12/547, AP(DIR SERIES), Circular No. 124 dt. 10.05.2012 and referred to pages 4-6 of the paper book. The ld. AR argued that the case of assesse is fully covered under the provisions of section 17 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ory II, may relese foreign exchange upto USD 100,000 or its equivalent to resident Indians for medical treatment abroad on self-declaration basis, without insisting of any estimate from a hospital/doctor in India/abroad. A person visiting abroad for medical treatment can obtain foreign exchange exceeding the above limit, provided the request is supported by an estimate from a hospital/doctor in India/abroad. 11. The above said answer to frequently asked question by the RBI issued in respect of forex facilities of residents, which was updated to 30-09-2013, placed at page-1 of the paper book, explains direction given to Category I banks and Category II to release foreign exchange. The above said facilities was issued for further clarification to the master circulars issued by the RBI as we already discussed about the same in aforementioned para. Therefore, it is clear from the master circulars issued by the RBI that the employee of assessee availed estimation of cost of medical treatment that may be incurred from the concerned hospital and accordingly, made request to concerned CBB Branch for issuance of foreign exchange currency. Therefore, as rightly found by the CIT-A no pe ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... by way of payment or reimbursement by an employer of expenditure on medical treatment on himself or on his spouse, children or parents, including the provision of free medical treatment or treatment at a concessional rate, will not be included in the taxable salary of the employee. Therefore, it is clear the value of cost of medical treatment is not a perquisite, chargeable to tax and, therefore, deduction of TDS thereon does not arise at all. Further reading of clause (v) of the said circular explains the expenditure is incurred for treatment (including on travel and stay abroad in connection with such treatment) as also on travel and stay abroad of one attendant, to the extent permitted by the Reserve Bank of India, subject to the condition that the amount qualifying for such tax exemption would not include expenditure incurred on travel in the case or employees whose gross total income, as computed under the Income-tax Act without considering the amount paid or reimbursed for expenditure in connection with medical treatment abroad, exceeds ₹ 1.00,000. 14. A perusal of the impugned order shows that the CIT-A considered all the issues in detail as discussed by us in the a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ere cannot be liability of the appellant to deduct TDS. The ground, therefore is allowed. 15. In view of our discussion made hereinabove and the finding of the CIT-A contained in paragraph 14 of this order, we find no violation of Rule 46A of the IT Rules 1962 and as such no infirmity in the impugned order of the CIT-A and it is justified. Ground nos. 1 2 raised by the revenue are dismissed. 16. Ground no. 3 is relating to deletion of addition made on account of non deduction of TDS. 17. The ld.DR submits that the assessee is a partner in Convent Height Developers. The AO observed that during the assessment proceedings the interest of ₹ 67,92,425/- had been paid to the said firm by the assessee without making TDS and the AO held that the assessee is liable to deduct tax at 10% on such interest payment and raised a demand of ₹ 6,79,290/-. The ld. DR further submits that the firm charged interest on the money which had been advanced to the assessee and the assessee had credited the interest in the accounts of the firm. As per the TDS provision, the assessee was liable to make TDS and relied on the order of AO. 18. On the other hand the ld.AR submits that ..... X X X X Extracts X X X X X X X X Extracts X X X X
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