Supreme Court Of India

Hon'ble Judge(s): Uday Umesh Lalit, S. Ravindra Bhat, Sudhanshu Dhulia , JJJ

Income-Tax Act (43 of 1961) , S.10(5)— Income-Tax Rules (1962) , R.2B— Assessment - Non-deduction of TDS of employees - Obligation of deducting tax is distinct from payment of tax - Amount of money received by employee as Leave Travel Concession (LTC) is exempted under S.10(5) of Act, however, said exemption cannot be claimed by employee for travel outside India - Employees had visited foreign countries which was not permissible under law, amount received by employees towards their LTC claims, not liable for exemption - Assessee, employer cannot claim ignorance about travel plans of its employees as during settlement of LTC Bills complete facts were available before assessee about details of their employees' travels - Held, assessee was in default for not deducting tax at source while releasing payments to its employees as LTC. ITA No. 05 of 2020, D/- 13.01.2020 (Del), Affirmed (Para 15 16)