2018 (11) TMI 1661 - HC - Income Tax

Karnataka HC Appeal: Exemptions & Tax Deductions

The Karnataka HC admitted an appeal to address questions concerning exemptions under Section 10(5) of the Act and tax deductions at source under Section ... Exemption under Section 10(5) - assessees-in-default u/s 201 for short deduction of taxes at source under Section 192 - HELD THAT:- Appeal is admitted to consider the following substantial questions of law: i. Whether the Tribunal was justified in holding that for the purposes of exemption under Section 10(5) of the Act, travel by the employees would only have to be within India, without appreciating that the said provision does not prohibit travel outside India but only limits the exemption available to the employees under the said provision to reimbursements for travel within India? ii. Whether the Tribunal was justified in holding that the Appellants were assessees-in-default under Section 201 of the Act for short deduction of taxes at source under Section 192 of the Act, when the said provision only envisages a fair estimate of the income of the employees and not mathematically precise computations by the employer for the purposes of tax deduction at source? The Karnataka High Court admitted an appeal to consider two substantial questions of law related to exemption under Section 10(5) of the Act and tax deduction at source under Section 192.