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2013 (1) TMI 511 - HC - Income TaxDaily allowance paid to the employees - whether would partake the character of hotel expenses for the purpose of disallowance under Section 37(3- A) to (3D)? - treatment of "daily allowances" as falling in the same category as "payments to hotels" - Held that:- Considering Sub Rule (2) of Rule 6 D of the Income Tax Rules, 1962 dealing with expenditure incurred by an assessee in connection with traveling by an employee or any other person within India clearly treats "hotel expenses" and "allowances paid to the employees" similarly and does not treat them distinctly. Therefore, the contention of the assessee that daily allowances paid to the employees under section 37(3A) to (3D) should be treated separately as distinct from payments to hotels, cannot be accepted. Therefore, the Tribunal was correct in treating the daily allowance paid to employees of the assessee as having the same character as hotel expenses for the purpose of disallowance under section 37(3A) to (3D) - against assessee.
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