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2014 (2) TMI 230 - AT - Income TaxLiability 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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