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2018 (10) TMI 725 - AT - Income TaxTDS u/s 192 - Addition u/s 17(2(v) - income from salary - perquisite - expenditure incurred for medical treatment of an employee incurred outside India - AO invoked the provisions of section 192 and held that the assessee is liable to deduct TDS @ 30% - Held that:- CIT(A) has deleted the additions on the ground that, Since RBI allows remission of medical expenses of the amount involved in the appellant's case, the AO's case that no permission of RBI existed in the instant case is not correct. As regards employees having gross total income equal to or exceeding 2,00,000/- the exclusion from the exemption as provided in Proviso(vi) to Section.17(2) applies only to travel expenses and not to medical expenses. Both the reasons cited by the AO for holding the appellant liable for TDS are not relevant. The AO, therefore, is not correct to hold that the appellant is liable to deduct TDS u/s.192 from medical expenses. In case the payee Mr. Dugar is not treated as a bonafide employee then the expense paid by the-appellant cannot be termed as perquisite. In that case the liability u/s. 192 cannot be brought upon the appellant. - Order of CIT(A) confirmed - Decided against the Revenue.
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