TMI Blog2013 (6) TMI 519X X X X Extracts X X X X X X X X Extracts X X X X ..... sion received by an employee from his employer or former employer, for proceeding on leave to any place in India. The person is to undertake the journey to any place in India and thereafter return to the place of employment and is entitled to reimbursement of expenditure on such travel between the place of employment and destination in India. Rule 2B of the Rules further lays down the conditions that the amount to be allowed as concession is not to exceed the air economy fair of the National Carrier by the shortest route to the destination in India. The said condition in no way provides that the assessee is at liberty to claim exemption out of his total ticket package spent on his overseas travel and part of the journey being within India. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... issue are that the assessee under the VRS Scheme of State Bank of India received sum of Rs. 2,65,914/- on account of ex-gratia payments which was claimed as exempt under section 10(10C) of the Act. The said claim of deduction was rejected both by the Assessing Officer and the CIT (Appeals). The learned A.R. for the assessee pointed out that the issue is covered by the ratio laid down by the Chandigarh Bench of Tribunal in Shri Bikram Jit Passi v. DCIT in ITA No.925/CHD/2011 relating to assessment year 2008-09 - order dated 9.11.2011 wherein similar claim in the hands of another ex-employee of State Bank of India was allowed. We find that the said issue has been adjudicated upon by the Tribunal in the case of Shri Bikram Jit Passi v. DCIT (s ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... inal destination of the journey shall be in India. The CIT (Appeals) referred to the provisions of section 10(5) of the Act and held as under: "2.3.1 A plain reading of clause (a) of section 10(5) reveals that exemption is not allowable, if it is for proceeding to any place which is not in India." 7. In respect of the provision of Rule 2B(1)(a)(b) it was observed by the CIT (Appeals) as under: "2.3.2 Provisions of Rule 2B(1)(a)(b) have again elaborated upon section 10(5) as under: "(1) The amount exempted under clause (5) of section 10 in respect of the value of travel concession or assistance received by or due to the individual from his employer or former employer for himself and his family in connection with his pr ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rney is also irrelevant. The Assessing Officer had only held that amount is not exempt u/s 10(5) of Income Tax Act, 1961." 8. The CIT (Appeals) thus held as under: "2.3.5 In view of the above discussion, it is held that the value of LTC received by the appellant is not exempt u/s 10(5) of the Income Tax Act, 1961. However, as the appellant had received only Rs. 1,19,227/- (rest of the amount was refunded), the amount to be taxed is to be restricted to Rs. 1,19,227/-. Ground of appeal No. 1(a) is partly allowed." 9. The learned A.R. for the assessee drew our attention to the certificate issued by the State Bank of India placed at page 15 of the Paper Book and it was pointed out that the assessee had visited one of the places in In ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... vidual ; and (ii) the parents, brothers and sisters of the individual or any of them, wholly or mainly dependent on the individual;" 12. The said sub-section provides that where an individual had received travel concession or assistance from his employer for proceeding on leave to any place in India, both for himself and his family, then such concession received by the employee is not taxable in the hands of the employee. Similar exemption is allowed to an employee proceeding to any place in India after retirement of service or after the termination of his service. The provisions of the Act are in relation to the travel concession/assistance given for proceeding on leave to any place in India and the said concession is thus exempt ..... X X X X Extracts X X X X X X X X Extracts X X X X
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