TaxTMI 
TaxTMI 
2019 (4) TMI 770
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....nds of appeal:- "1. The order passed by the Learned CIT (A) - 4 Vadodara, is bad in law, contrary to legal pronouncements and same be quashed. The disallowances/additions are unwarranted and same be deleted now. 2. Your appellant submits that the provisions of section 147 r.w.s. 148 are not applicable in the case of your appellant since the reasons recorded for re-opening I.T.A.Nos.2290,1417,&1587/Ahd/2017&1618/Ahd/2018A.Ys.2011-12,2012-13,2010-11&2013-14 3 the assessment are not valid as per law. It be held so now and order passed by AO be quashed. 3. The Learned CIT (A) - 4 Vadodara, has erred in upholding the disallowance of Rs. 4,06,452/- made by the AO on account of Leave Travel Concession claimed by the Assessee by virtue of section 10(5) of the Act. The Learned CIT(A) - 4 has erred in not appreciating the facts that the Assessee has claimed LTC u/s 10(5) to the extent of travel within India(Andaman & Nicobar). It may be appreciated that Andaman and Nicobar is part of India and hence the tour taken by the Appellant be considered as Travel within India. It is therefore submitted that the Hon CIT(A)-4, Vadodara has wrongly confirmed the disallowance m....
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.... wholly or mainly dependent on the individual;] 4. In your case, it is seen that your journey also included travelling at foreign destinations which is not in consistent with the provisions of sec. 10(5) of the Income-tax Act, 1961.The plain reading of sec. 10(5) of the Act and Rule 2B of the Income-tax Rules in no way provided that the assessee is at liberty to claim exemption out of his ticket package spent on his overseas travel and part of the journey being undertaken within India. As such an amount of L.T.C./L.F.C./L.T.A. has been wrongly claimed as an exempt. You are, therefore, requested to show cause as to why the said amount of Rs. 4,06,452/- claimed by you as an exempt should not be disallowed and added to your total income for that assessment year?" 3. The assessee has explained that his claim of LTC of Rs. 4,06,452/- was exempted u/s. 10(5) of the Act since he has not claimed any amount toward his journey to foreign destinations. He has further explained that as per provisions of sec. 10(5) of the Act r.w.r 2B of the Rules no disallowance shall be made for his claim of LTC. The AO has not accepted the claim of the assessee. He has referred sec. 10(5) of the ....
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....on 10(5) as well as 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 final 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. 4.6. The contention of the appellant that the Assessing Officer had overlooked the fact that Rule 2B of Income Tax Act, 1962 only stipulated that the amount of LTC shall not exceed the fare charged by the national carrier for the shortest route is not relevant in the present case. Similarly, the contention of the appellant that the rules of the bank permit the appellant to take circuitous route even involving foreign journey is also irrelevant. The Assessing Officer had only held that amount is not exempt u/s 10(5) o....
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....t provisions of sec. 147 r.w.s. 148 are not applicable since the reasons recorded for reopening the assessment are not valid as per law. On this issue we have perused the material on record and it is noticed that AO has reopened the case of the assessee on the ground that while availing LTC the assessee has also performed journey to foreign destination and such kind of LTC is not exempt u/s. 10(5) of the Act. The reimbursement of such claim of LTC was not offered for tax by the assessee, In the light of the above fact and circumstances we do not find merit on this ground of appeal of the assessee that provision of sec. 147 r.w.r. 148 are not applicable in the case of the assessee . The assessee has also failed to substantiate how the reason recorded for reopening assessment were not valid. Therefore, we do not find any merit in this ground of appeal of the assessee. Accordingly, this ground of appeal of the assessee stand dismissed. The ground no. 3 of the assessee is against the decision of Ld. CIT(A)-4 Vadodara in upholding the disallowance of Rs. 4,06,452/- made by the AO on account of Leave Travel Concession claim by the assessee by virtue of sec. 10(5) of the Act. With t....
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....even if the employee travels to foreign countries, exemption would be limited to the expenditure incurred to the last destination in India. For the sake of reference, we extract the provisions of section 10(5) of the Act as under:- 10. In computing the total income of a previous year of any person, any income falling within any of the following clauses shall not be included- [(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 prescribed (including conditions as to number of journeys and the amount which shall be exempt per head) having regard to the travel concession or assistance granted to the employees of the Central Government: 9. On perusal of this section , we are of the view that this provision was introduced in order....