Employer not liable to collect & check proofs under Sec. 192

1:38 PM
IN THE SUPREME COURT OF INDIA

CIVIL APPELLATE JURISDICTION

CIVIL APPEAL NO. 989 OF 2005
*

COMMISSIONER OF INCOME TAX, BANGALORE & ANR. ...APPELLANT (S)

VERSUS

M/S I.T.I. LIMITED ...RESPONDENT(S)

ORDER

A short question which arises for determination in this Civil Appeal is -
whether the assessee was under statutory obligation under Income Tax Act,
1961, and/or the Rules to collect evidence to show that its employee(s) had
actually utilized the amount(s) paid towards Leave Travel
Concession(s)/Conveyance Allowance?

It may be noted that the beneficiary of exemption under Section 10(5) is an
individual employee. There is no circular of Central Board of Direct Taxes
(CBDT) requiring the employer under Section 192 to *collect and
examine* *(emphasis
provided)* the supporting evidence to the Declaration to be submitted by an
employee(s).

For the above reasons there is no merit in the Civil Appeal and the same is
dismissed with no order as to costs.

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