TMI Blog2008 (1) TMI 23X X X X Extracts X X X X X X X X Extracts X X X X ..... at the fixed rate is exempt u.s.10(14) only on the basis of declaration filed by the employees without verifying actual expenditure incurred by the employee maintaining records thereof not including the same for the purpose of taxable income for the deduction of tax at source u.s. 192 of the I.T. Act, 1961? (ii) Whether on the facts and in the circumstances of the case the Tribunal was justified in law in holding that L.T.A. paid by the assessee to their employees at the fixed rate is exempt u.s. 10(5) only on the basis of declaration field by the employees without verifying actual expenditure incurred by the employee maintaining records thereof and not including the same for the purpose of taxable income for deduction of tax at ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he assessee did not act honestly and fairly and or that there was any reason for the assessee to raise any suspicion with regard to the declaration filed by the employees. The tribunal held that it was not a case where the assessee had blindly accepted the declarations and for the aforesaid reasons, considering that the employer is expected to deduct tax only on estimated income and on facts on recording held that the assessee has fairly estimated the income and for that reasons, quashed the demands raised. In our opinion, these are purely findings of fact recorded by the tribunal with which no fault can be found. 4. Apart from that our attention has been invited to the judgment on the similar issue in ITA No. 104 to 107/BOM/90 in G ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... on no referable question of law arises. Hence, rejected." 5. The revenue took out the matter in Appeal before the Supreme Court. The Special Leave Petition was dismissed. 6. It will be clear therefore, that even if the amendment to section 201 has been applied retrospectively, the test whether the assessee acted bona fide is still available as what the assessee under Section 192(1) is called upon, is to deduct tax "on the estimated income". In our opinion, the facts in Glaxo (supra) would clearly apply. On behalf of the Revenue, the learned counsel had brought to our attention the judgment of this court in the case of Benett Coleman Co. Ltd. Vs. V.P. Damle, Third Income Tax Officer, TDS Circle , Bombay , ..... X X X X Extracts X X X X X X X X Extracts X X X X
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