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2007 (1) TMI 155 - PUNJAB AND HARYANA HIGH COURTClaimed exemption u/s 10(5) read with rule 2B of the Income-tax Rules, 1962 - Expenses incurred by the employees on account of LTC - Orders passed u/s 201(1) and 201(1A) - HELD THAT:-Tribunal has recorded a categorical finding that the assessee had reimbursed the expenses incurred by its employees for LTC after obtaining all the information in the prescribed pro forma then the assessee is entitled to exemption. Moreover, the accounts were subjected to verification by the auditors appointed by the Comptroller and Auditor General of India and no discrepancy has been pointed out by the auditors. The Assessing Officer has failed to point out any specific instance where the expenses have been reimbursed to an employee on the basis of a fraudulent or wrong certificate given by him/her. Moreover, there are categorical findings by the Tribunal that the exemption for LTC deserved to be granted to the assessee-company because the declaration filed in the prescribed pro forma by the assessee gives full details of the journey undertaken by the employee and the expenses actually incurred by them. The action of the assessee-company has been found to be bona fide. In view of the above, we do not find that any question of law would arise warranting admission of the appeal because the fact as to whether an employee of the assessee-company had undertaken the journey to avail of LTC and has claimed the same bona fide is necessarily a question of fact. The Tribunal after going into the detailed certificate furnished on the prescribed pro forma by the employees of the assessee-company have found that full details of journey undertaken by them along with expenses incurred have been given. If that be so, then no question of law would arise because these are pure questions of fact. Therefore, both the appeals are decided against the Revenue and in favour of the assessee.
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