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2020 (1) TMI 628 - HC - Income TaxTDS on Leave Travel Concession - assessee in default - HELD THAT:- The employees of the appellant had undertaken journeys to the designated places in India via foreign countries. The instances of such travel are tabulated in the tabulation placed on record which shows that travel was undertaken to Port Blair via Malaysia, Singapore, Port Blair via Bangkok, Malaysia, Rameswaram via Mauritius, Madurai via Dubai, Thailand, Port Blair via Europe etc. Obviously, such journeys did not qualify towards LTC claim, since under the LTC scheme, the journeys have to be undertaken within India and by the shortest route. The amounts received by the employees of the appellant-assessee towards reimbursement of LTC claims are therefore not liable to exemption and, consequently, the appellant is liable to deduct tax at source in respect of payments made by it to its employees. Since the appellant had not deducted tax on the entire amount paid and deducted tax only in respect of part of the amount paid as per its own understanding, the finding that the appellant was an assessee in default, in our view, is completely justified. Tribunal was also correct in its view that it was the primary obligation of the appellant being the deductor, to establish that the recipients had disclosed the amounts received by them towards LTC claims as part of their taxable income and paid tax thereon. The appellant has been afforded the opportunity to make good their claims premised upon the proviso to Section 201(1) - No substantial question of law
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