https://www.taxtmi.com/caselaws?id=62918 ITAT allowed the assessee's appeals, holding that reimbursement of conveyance expenses to employees, paid on the basis of declarations and in addition to other taxed allowances, could not automatically be treated as taxable salary for TDS purposes. It observed that exemption under s.10(14) depends on factual verification by the AO as to whether the allowance was spent wholly, exclusively and necessarily for employment duties. Given the long-standing practice of not deducting TDS on this component and absence of mala fides, the assessee could not be treated as an "assessee in default" under s.201(1). Consequently, both penalty under s.201(1) and interest under s.201(1A) were deleted for all years. en-us Fri, 28 Feb 1997 00:00:00 +0530 Tue, 16 Dec 2025 12:48:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=62918 ITAT allowed the assessee's appeals, holding that reimbursement of conveyance expenses to employees, paid on the basis of declarations and in addition to other taxed allowances, could not automatically be treated as taxable salary for TDS purposes. It observed that exemption under s.10(14) depends on factual verification by the AO as to whether the allowance was spent wholly, exclusively and necessarily for employment duties. Given the long-standing practice of not deducting TDS on this component and absence of mala fides, the assessee could not be treated as an "assessee in default" under s.201(1). Consequently, both penalty under s.201(1) and interest under s.201(1A) were deleted for all years. Case-Laws Income Tax Fri, 28 Feb 1997 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=62918