TaxTMI 
TaxTMI 
2013 (6) TMI 519
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.... upheld by the Commissioner of Income Tax (Appeals) Chandigarh is bad in law and is beyond all the cannons of law and justice. 2. That the order of the Assessing Officer as upheld by the Commissioner of Income Tax (Appeals) Chandigarh disallowing the claim of the appellant at Rs. 2,65,914/ - u/s 10(10C) of the Income Tax Act is bad in law and needs to be set aside. 3. That the order of the Assessing Officer as upheld by the Commissioner of Income Tax (Appeals) Chandigarh disallowing the claim of the appellant at Rs. 1,19,227/- on account of LTC u/s 10(5) of the Income Tax Act is bad in law and needs to be set aside." 3. The ground No.1 raised by the assessee is general and is dismis....
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....consideration. During the assessment proceedings, the Assessing Officer noted that the leave travel package covered Singapore and Malaysia also. The Assessing Officer held that the said amount received by the assessee on account of leave travel concession is not exempt in view of the provisions of section 10(5) of the Act r.w.r. 2B of the Income Tax Rules as the said tour was undertaken for travel overseas. As per the assessee, final destination of the LTC tour was in India and so it was exempt. The assessee before the CIT (Appeals) furnished written submissions which are incorporated under para 2.2 and claimed that Rule 2B of the Rules stipulates that the amount of LTC should not exceed the fair charged by the National Carrier in the short....
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.... the relevant rule 2B do not stipulate that journey to any place in India would be made via a place outside India The intention of the legislature was certainly nor to grant: exemption for reimbursement of the value of LTC in a case where was performed via a foreign country. In fact, the national carrier i.e. Air India/Indian Airlines had also been offering LTC packages to various destinations in India and allowing passengers to visit the foreign countries at the full fare chargeable to the filial destination in India and it was clearly mentioned on the website (of Air India/Indian Airlines) that the value of LTC was chargeable to income tax. 2.3.4 The contention of the appellant that the Assessing Officer had ov....
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....ates exemption in respect of journey concession received by an individual from his employer and provides as under: "10(5) in the case of an individual, the value of any travel concession or assistance received by, or due to, him,- (a) from his employer for himself and his family, in connection with his proceeding on leave to any place in India ; (b) from his employer or former employer for himself and his family, in connection with his proceeding to any place in India after retirement from service or after the termination of his service, subject to such conditions as may be prescribe....
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....ection 10(5) of the Act are laid down. The conditions are in respect of various modes of transport. However, the basic condition is that the employee is to utilize the travel concession in connection with his proceeding to leave to any place within India, either during the course of employment or even after retirement of service or after termination of service. Reading of section 10(5) of the Act and Rule 2B of the Rules in conjunction lays down the guidelines for claiming exemption in relations to the travel concession received by an employee from his employer or former employer, for proceeding on leave to any place in India. The person is to undertake the journey to any place in India and thereafter return to the place of employment and i....