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TMI Blog2019 (1) TMI 637X X X X Extracts X X X X X X X X Extracts X X X X ..... exemption under section 10(5) r/w Rule 2B. The grounds of appeal taken by the assessee are accordingly dismissed. - ITA. No. 1227/JP/2018 - - - Dated:- 7-1-2019 - SHRI VIJAY PAL RAO, JM SHRI VIKRAM SINGH YADAV, AM For The Assessee : Smt. Pankaj Jain (C.A.) For The Revenue : Shri P.P. Meena (JCIT) ORDER PER: VIKRAM SINGH YADAV, A.M. This is an appeal filed by the assessee against the order of ld. CIT(A), Kota dated 31.08.2018 for Assessment Year 2013-14 wherein the assessee has taken following grounds of appeal:- 1. The CIT(Appeals) Kota has rejected our appeal against the demand raised by the ITO TDS, Kota for not giving LTC benefit under section 10(5) due to foreign destination is involved in L ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... y the facts of the case are that the ITO(TDS) observed that the assessee Bank has made reimbursement of LFC/LTC claim of its certain employees who as part of their LFC/LTC have submitted claim towards travel which also included foreign leg of the travel. The ITO(TDS) referring to the provisions of Section 10(5) of the Income Tax Act and Rule 2B of Income Tax Rules, 1962 held that the exemption for LTC/LFC is available only for visit to any place in India, provided that the amount exempt under this clause shall in no case exceed the amount of expenses actually incurred for the purpose of such travel. Therefore, the assessee bank was held as assessee in default for not deducting the TDS on the reimbursement to the extent of journey performe ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ndings are as under: 8. Having carefully examined the orders of the lower authorities in the light of the rival submissions and the documents placed on record, we find that as per provisions of section 10(5) of the Act, only that reimbursement of travel concession or assistance to an employee is exempted which was incurred for travel of the individual employee or his family members to any place in India. Nowhere in this clause it has been stated that even if the employee travels to foreign countries, exemption would be limited to the expenditure incurred to the last destination in India. For the sake of reference, we extract the provisions of section 10(5) of the Act as under:- In computing the total income of a previous year of an ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... LFC bills, complete facts are available before the assessee as to where the employees have travelled, for which he has raised the claim; meaning thereby the assessee was aware of the fact that its employees have travelled in foreign countries, for which he is not entitled for exemption under section 10(5) of the Act. Thus, the payment made to its employees is chargeable to tax and in that situation, the assessee is under obligation to deduct TDS on such payment, but the assessee did not do so for the reasons best known to it. We have also carefully examined the Circular placed by the ld. counsel for the assessee during the course of hearing, in which a reference was made to the interim order of the Hon'ble Madras High Court dated 16.2.2 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ovides that where an individual had received travel concession or assistance from his employer for proceeding on leave to any place in India, both for himself and his family, then such concession received by the employee is not taxable in the hands of the employee. Similar exemption is allowed to an employee proceeding to any place in India after retirement of service or after the termination of his service. The provisions of the Act are in relation to the travel concession/assistance given for proceeding on leave to any place in India and the said concession is thus exempt only where the employee has utilized the travel concession for travel within India. Further under Rule 2B of the Income Tax Rules the condition for allowing exemption un ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... we reject the claim of the assessee of exemption under section 10(5) of the Act. The ground of appeal No. 3 raised by the assessee is thus dismissed. 11. No contrary authority has been brought to the notice of the Bench. We, therefore, donot see any reason to deviate from the said view taken by the Coordinate Benches. In the result, the grounds no. 1-6 of the assessee's appeal are dismissed. 6. In absence of any contrary authority, following the consistent view taken by the Co-ordinate Benches referred supra, the order of the ld CIT(A) is hereby affirmed where he has held the assessee bank to be assessee in default for short-deduction of TDS on LFC/LTC claim relating to foreign leg of the travel of its employees being not e ..... X X X X Extracts X X X X X X X X Extracts X X X X
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