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| The Tax Publishers2020 TaxPub(DT) 0183 (Ahd-Trib) INCOME TAX ACT, 1961
Section 10(5) read with section 192
After perusal of the provision of section 10(5), it was observed that said provision was introduced in order to motivate the employees and also encourage tourism in India, and therefore, the reimbursement on LTC/LFC was exempted. But there was not any such provision which provides exemption to employees for travelling abroad to get benefit of LTC by virtue of section 10(5).
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Exemption under section 10 - Leave travel concession - Non-compliance of tax deduction at source - In case of employees travelling abroad
Issue was as to whether LTC paid by assessee to employees involving foreign travel would not qualify for exemption under section 10(5) and, consequently assessee was liable to comply TDS provision on such payment of LTC. Held: After perusal of the provision of section 10(5), it was observed that said provision was introduced in order to motivate the employees and also encourage tourism in India, and therefore, the reimbursement on LTC/LFC was exempted. But there was not any such provision which provides exemption to employees for travelling abroad to get benefit of LTC by virtue of section 10(5).
Followed:State Bank of India v. DCIT [2016 TaxPub(DT) 1330 (Luck-Trib)]
REFERRED :
FAVOUR : Against the assessee
A.Y. : 2013-14
IN THE ITAT, AHMEDABAD BENCH
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