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2020 (1) TMI 118 - ITAT AHMEDABADNon-deduction of tax (TDS) on LTC/LFC in the cases where employees have travelled abroad - Claim of exemption u/s. 10(5) - demand raised u/s. 201 and 201(1A) - HELD THAT:- After perusal of the provision of section 10(5) of the act, we observed that the said provision was introduced in order to motivate the employees and also encourage tourism in India, and therefore, the reimbursement on LTC/LFC was exempted but there was not any such provision which provide exemption to the employees for travelling abroad to get benefit of LTC by virtue of section 10(5) of the act. We consider that on identical facts and similar issues have been adjudicated by the ITAT Lucknow in the case of State Bank of India V. DCIT [2016 (3) TMI 282 - ITAT LUCKNOW] We consider that assessee is not entitled for exemption u/s. 10(5) of the act, therefore, we do not find any merit in the appeal of the assessee. We observed that the claim of the assessee for exemption is without legal basis and assessee has failed to prove that how such foreign travel expenses would come within ambit of section 10(5) of the act. After taking into consideration the above judicial views and detailed finding of ld. CIT(A), we are of the view that the decision of ld. CIT(A) is justified and no interference is required. Therefore, the appeal of the assessee is dismissed.
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