Assessee employer is under no statutory obligation to collect and examine the s…
Assessee employer is under no statutory obligation to collect and examine the supporting evidence to the declaration submitted by an employee to the effect that he has actually utilized the amount(s) paid towards leave travel concession/conveyance allowance for the purposes of TDS under s. 192.
Assessee employer is under no statutory obligation to collect and examine the supporting evidence to the declaration submitted by an employee to the effect that he has actually utilized the amount(s) paid towards leave travel concession/conveyance allowance for the purposes of TDS under s. 192.
COMMISSIONER OF INCOME TAX & ANR. VS I.T.I. LTD.-(Supreme Court)
Assessee
TDS—Under s. 192—Exemption in respect of LTC vis-a-vis evidence of actual utilization of amount—Beneficiary of exemption under s. 10(5) is the individual employee—There is no circular of CBDT requiring the employer to collect and examine the supporting evidence to the declaration submitted by an employee to the effect that he has actually utilized the amount(s) paid towards leave travel concession/conveyance allowance for the purposes of TDS under s. 192—Hence, assessee
employer is under no statutory obligation to collect such evidence.
(Para 2)
A short question which arises for determination in this Civil Appeal is – whether the assessee was under statutory obligation under Income Tax Act, 1961, and/or the Rules to collect evidence to show that its employee(s) had actually utilized the amount(s) paid towards Leave Travel Concession(s)/Conveyance Allowance?
It may be noted that the beneficiary of exemption under Section 10(5) is an individual employee. There is no circular of Central Board of Direct Taxes (CBDT) requiring the employer under Section 192 to collect and examine the supporting evidence to the Declaration to be submitted by an employee(s).
For the above reasons there is no merit in the Civil Appeal and the same is dismissed with no order as to costs.
[ S.H. KAPADIA ]
New Delhi,
January 21, 2009 [ AFTAB ALAM ]
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Assessee employer is under no statutory obligation to collect and examine the supporting evidence to the declaration submitted by an employee to the effect that he has actually utilized the amount(s) paid towards leave travel concession/conveyance allowance for the purposes of TDS under s. 192.
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