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2023 (8) TMI 38 - AT - Income TaxExemption u/s 10(5) denied - reimbursement of Leave Travel concession Involving foreign leg through circuitous route as long as the employees designated place is in India for his leave travel concession and he actually visits the place as designated - HELD THAT:- On respectful perusal of the judgment of the Hon'ble Supreme Court [2022 (11) TMI 426 - SUPREME COURT] in assessee’s own case in Civil Appeal (supra) we find that the identical issue under identical facts and circumstances for AY 2013-14 has been decided in favour of the revenue and against assessee as held provision for LTC was introduced to motivate employees and encourage its employees towards tourism in India and it is for this reason that reimbursement of LTC was exempted. There was no intention of legislature to allow the employees to travel abroad in the garb of LTC available by virtue of Section 10(5) of the Act. Therefore, the Revenue has a valid objection (apart from other objections which are clearly violative of the Statute), that the intention and purpose of the scheme is also violated in the garb of tour within India, foreign travel is being availed. The appellant cannot claim ignorance about the travel plans of its employees as during settlement of LTC Bills the complete facts are available before the assessee about the details of their employees” travels. Therefore, it cannot be a case of bonafide mistake, as all the relevant facts were before the Assessee employer and he was therefore fully in a position to calculate the “estimated income” of its employees. The contention of assessee that there may be a bonafide mistake by the assessee-employer in calculating the “estimated income” cannot be accepted since all the relevant documents and material were before the assessee- employer at the relevant time and the assessee employer therefore ought to have applied his mind and deducted tax at source as it was his statutory duty, under Section 192(1) of the Act. Decided against assessee.
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