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2018 (4) TMI 1484 - HC - Income TaxTDS on Salary - perquisite - Living allowance u/s 10(14) - inclusion of boarding and lodging allowances paid to employees sent on deputation to U.K. - whether these allowances paid to the employees deputed to the U.K. fall within the provisions of Section 10(14)(i) of the Income Tax Act - Held that:- After considering Section 10 (14) of the Act, this Court, In Bellien Michael Andresmant (1998 (10) TMI 58 - ANDHRA PRADESH High Court), has observed that there was no evidence on record to establish that the living allowance was paid to the assessees in connection with the duties to be performed by them and that in the absence of such evidence, it cannot be held that the allowance paid to them was exempted under Section 10 (14) of the Act. The amounts in dispute attract the definition of perquisite in Section 17 (2) of the Act and they do not fall within the exception of Section 10 (14) of the Act. Levy of interest u/s 201(1A) - bonafide belief for non deduction of tax on perquisite - Held that:- As rightly argued by the learned counsel for the Revenue, unlike Section 221 of the Act, Section 201 (1A) of the Act is not hedged in by any requirement such as good faith, wilful default etc.,. Therefore, for levying interest, mens rea or wilful conduct is wholly irrelevant. In view of the fact that the appellant failed to deduct tax on the payments made, Section 201 (1A) is automatically attracted and even if the appellant is bona fide in not making such deduction, it is nevertheless liable to pay interest. The third question of law framed by the appellant is accordingly answered against it.
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