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TMI Blog2020 (1) TMI 118X X X X Extracts X X X X X X X X Extracts X X X X ..... (1A) of the act on reimbursement of LTC/LFC in the cases where employees have travelled abroad was not exempt u/s. 10(5) of the act and the assessee was in default in non-deduction of tax from such LTC/LFC. 3. The fact in brief is that the assessee is a banking company running business of banking. A verification/survey was carried out in the case of State Bank of India, Zonal Office, Office Administrative Section S.M. Ahmedabad on 25th Feb, 2014. During the course of verification, it was noticed that some employees have performed leave travel through circuitous route via foreign countries therefore the reimbursement made by the assessee was not exempt u/s. 10(5) of the act. The assessing officer has noticed that the following three employ ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... eved assesseee has filed appeal before the ld. CIT(A). The ld. CIT(A) has dismissed the appeal of the assessee. 5. We have heard the rival contentions and perused the material on record. The CIT(A) has upheld that order passed by the ITO, TDS u/s. 201(1) and 201(1A) of non-deduction of tax on the ground that assessee was not exempt from the tax under the provision of section 10(5) of the act in respect of LFC/LTA travelled overseas to the destination in India. The assessee was of the view that in case an employee travelled outside India during the course of his visit to a place in India reimbursement is made to him for his entire journey by circuitous route provided by the reimbursement made to him is limited to the actual fare/hire charg ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... r of any person, any income falling within any of the following clauses shall not be included- [(5) in the case of an individual, the value of any travel concession or assistance received by, or due to, him,- (a) from his employer for himself and his family, in connection with his proceeding on leave to any place in India ; (b) from his employer or former employer for himself and his family, in connection with his proceeding to any place in India after retirement from service or after the termination of his service, subject to such conditions as may be prescribed (including conditions as to number of journeys and the amount which shall be exempt per head) having regard to the travel concession or assistance granted to the employ ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nterim order, the Hon'ble Madras High Court has permitted the bankers not to deduct TDS on or after 16.2.2015 on the amount paid/reimbursed to the employees of the bank in respect of LTC/HTC availed where the employee has visited a foreign city/country, irrespective of the fact whether the LFC bills were submitted and paid prior to 16.2.2015; meaning thereby this Circular was passed consequent to the interim order of the Hon'ble Madras High Court. But in the present case, the journey was undertaken in the year 2012 and the bills were settled during that year; meaning thereby at the relevant point of time when the bills were settled, there was no order of the Hon'ble Madras High Court and the assessee was under obligation to dedu ..... X X X X Extracts X X X X X X X X Extracts X X X X
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