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2014 (2) TMI 230 - ITAT BANGALORELiability for deducting TDS u/s 192 of the Act - Payment made to employees – Medical reimbursement, leave travel allowance and meal vouchers - Survey u/s 133A of the Act – Held that:- There is no substance in the plea of the DR - These are not the cases in which the assessment of perquisite in the hands of the employees is being made - the provisions for deducting tax at source are all machinery provisions - The obligation of the person making payment, in the context of these provisions, is only to make a bonafide estimate of the income of the person to whom the payment is made – thus, the estimation made by the assessee is bona fide. Relying upon The Assistant Commissioner of Income Tax (TDS) Versus M/s. Infosys BPO [2013 (9) TMI 205 - ITAT BANGALORE] - The primary liability of the payee to pay tax remains - In a situation of honest difference of opinion, it is not the deductor that is to be proceeded against but the payees of the sums - To reiterate, the payment towards medical expenditure and leave travel is made keeping in view the employee welfare - The exclusion in respect of payment towards medical expenditure and leave travel is considered after verifying the details and evidence furnished by the employees - No exemption is granted in the absence of details and/or evidence - The exemption in respect of medical expenditure is restricted to expenditure actually incurred by the employees - The exemption is granted even if the payment precedes the incurrence of expenditure - The requirements/conditions of section 10(5) and proviso to section 17(2) are meticulously followed before extending the deduction/ exemption to an employee - No tax can be recovered from the employer on account of short deduction of tax at source under section 192 if a bona fide estimate of salary taxable in the hands of the employee is made by the employer – Decided against Revenue.
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