TMI Blog2020 (4) TMI 658X X X X Extracts X X X X X X X X Extracts X X X X ..... of ₹ 15,000, the same had to be considered as salary and not exempt perquisite. The reasoning is the same that the payment should not precede the actually incurring of the expenses and it should be only by way of reimbursement. The grievance of the assessee is that there should not be any deduction of TDS on reimbursement of medical allowance and charging of interest thereon. On perusal of the impugned order CIT(A) observed that the assessee has paid fixed medical allowance and as per the CBDT letter issued to LIC, the exemption of ₹ 15000/- is allowed to reimbursement of actual expenditure. We find that medical allowance is a fixed allowance paid to the employees of a company on a monthly basis irrespective of whether they ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... as already dealt the same in the appellate order. The authorities below have decided the issue in detail and accordingly, we uphold the same. - Decided against assessee. - ITA No.196/CTK/2019, 199/CTK/2019, 218/CTK/2019, 219/CTK/2019, 250/CTK/2019 And 251/CTK/2019 - - - Dated:- 17-2-2020 - Shri C.M. Garg, JM And Shri L.P. Sahu, AM For the Assessee : Shri Sunakar Mahanty, Adv. For the Revenue : Shri Subhendu Dutta, DR ORDER PER BENCH : These six appeals have been filed by the assessee against the order of CIT(A), Sambalpur, all dated 15.03.2019 for the assessment years 2011-2012 2012-2013. 2. In all the above appeals, the assessee has raised common ground with regard to confirming the addition by the CIT(A) ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 3. ITA No.218/CTK/19 2011-2012 ₹ 1,72,582/- ₹ 34,597/- 4. ITA No.219/CTK/19 2012-2013 ₹ 33,578/- ₹ 2,686/- 5. ITA No.250/CTK/19 2011-2012 ₹ 1,39,001/- ₹ 26,410/- 6. ITA No.251/CTK/19 2012-2013 ₹ 40,824/- ₹ 2,858/- 4. Feeling aggrieved from the order of AO, the assessee appealed before the CIT(A), however, the CIT(A) dismissed all the appeals of the asses ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ord, we noticed from the orders of authorities below that the ITO(TDS) noted that under the Income Tax Act, the cash medical benefit which is paid as an allowance is taxable u/s.15 of the Act irrespective of the fact that it is paid in addition to or in lieu of salary. The AO was of the view that what is contemplated by proviso (iv) to Sec.17(2) of the Act was any sum paid by the employer in respect of any expenditure actually incurred by the employee on his medical treatment or treatment of any member of his family. Since the Assessee was paying medical reimbursement as a component of the monthly payment to the employee and later claiming that it was not perquisite to the extent of ₹ 15,000, the same had to be considered as salary ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ided fixed medical allowance to his employees. It is clear from the order of the authorities below that the employees have not submitted any bills/vouchers regarding their medical expenses incurred by them. The allowance is exempt to the extent of expenditure incurred by the employees. In the impugned case, there is no any proof of medical expenditure incurred by the employees which is clear from the orders of authorities below. The ld. AR of the assessee also could not substantiate that the employees have spent the allowances received by them for the intended purpose. Therefore, the fixed medical allowance given by the employer is taxable as salary income. The employer has not been deducted TDS on the fixed medical allowance. The CBDT l ..... X X X X Extracts X X X X X X X X Extracts X X X X
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