2019 (12) TMI 749

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....IT(A) is bad in law and wrong on facts. 2.1 That CIT(A) erred both on facts and in law in disallowing a sum of Rs. 5,76,286/- for non-submission of documents and non-deduction of TDS on reimbursements made to Dr. Rajen Ghadiok and Ms.Rachna Kamra on account of Petrol, Drivers' Salary and Mobile Expenses. 2.2 That CIT(A) erred both on facts and in law in disallowing a sum of Rs. 11,52,572/- for non-submission. of documents and non- deduction of TDS on reimbursements made to four other employees on account of Petrol, Drivers' Salary and Mobile Expenses. 3. That CIT(A) has erred both on facts and in law in disallowing the aforesaid amount without considering the fact that no TDS is deductible on the aforesaid reimbur....

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....6A. Similarly, in the case of Ms. Rachna Kamra salary of Rs. 12,74,361/- was debited in the profit and loss account, whereas in form No. 16A, gross salary of Rs. 9,86,218/- was only shown. Thus, according to the Ld. CIT(A), difference of Rs. 2,88,143/- was found in salary claimed in books of account and salary shown in Form No. 16A in case of both the employees. The assessee explained that the amount of Rs. 2,88,143/- was reimbursed to the employees towards driver salary, petrol expenses and mobile expenses, on which no tax was deductible at source, and therefore, same did not appear in form No. 16A issued to the employees. 2.1 The Ld. CIT(A) found that amount of reimbursement of Rs. 2,88,143/- claimed for expenses was fixed in case of a....

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....We have heard the rival submission of the parties on the issue in dispute in the light of the order of the lower authorities and paper book containing pages 1 to 26 filed by the assessee and other material available on record. 4. In the grounds raised by the assessee, the first issue relates to nature of the amount of Rs. 2,88,143/- paid to two employees, namely, Dr Rajen Ghadiok and and Ms. Rachna Kamra and amount of Rs. 2,88,143/- paid to other four employees namely Sh. JS Puri, Jasbir Grewal, Sh. Sanjeev Vashisht and Sh. Harshvendra Sain. According to the assessee, the payments are in the nature of reimbursement of drivers salary, petrol and mobile expenses, which have been paid in cash monthly along with the salary. But on being aske....

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....ce filed are ledger accounts of driver's salary, petrol and mobile reimbursements. No evidence by way of vouchers submitted by the employees evidencing payments to claim the alleged reimbursements is furnished. It is also not understood as to how with respect to all employees, the reimbursement amount is a fixed figure of Rs. 2,88,143/-. It is quite evident that cash is being disbursed to the concerned employees in the guise of reimbursement so as to avoid deduction of tax on this cash component of salary. It is also noted that the alleged reimbursement is not with reference to the amount of salary claimed in the P & L A/c. In the light of these facts, it is held that the so called reimbursement is nothing but a fixed amount being paid in c....