2022 (9) TMI 1240

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....8 respectively. 2. The grounds of appeal are as under:- I.T.A. No. 4852/DEL/2019 (A.Y 2016-17) 1. That order of Ld CIT (A), on aspects agitated in this appeal, is bad in law being contrary to the provisions of the law and without appreciation of the facts and circumstances of the case in their right perspective. 2. That on the facts and circumstances of the case and provisions of the law, the Ld AO as well as Ld CIT(A) erred in raising/confirming the demand of Rs. 32,36,633- (including interest of Rs.7,19,761/-) by denying the exemption u/s 10(5) in respect of reimbursement of Leave Travel concession involving foreign leg through circuitous route as long as the employees designated place is in India for his leave tra....

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....nation and reimbursed amount was allowed as examined u/s 10(5) of the Act. Since the expenditure incurred on foreign LFC was not except, a notice u/s 201(1)/201(1A) of the Act was issued to the assessee. In reply, the assessee mainly contended that as per Section 10(5) of the Act read with Rule 2B of Income Tax Rules, the LFC (Leave Fare Concession) has to be only to a designated place in India and the same has been complied with. The said contention of the assessee has been rejected on the ground that exemption u/s 10(5) of the Act is available for journey performed in India only. Therefore, the total expenditure reimbursed by the assessee on account of foreign component of LFC has been determined by the A.O separately and accordingly tax ....

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....al filed by the assessee. As against the order of the Hon'ble Delhi High Court in ITA No. 5/2020, the assessee has preferred an Appeal before the Hon'ble Supreme Court in Special Leave to Appeal No. 9876/2020. The Hon'ble Supreme Court vide order dated 13/01/2020, pending further consideration of the Special Leave Appeal, the operation and the effect of the order under challenge has been stayed. The Ld. Counsel for the assessee submitted that in view of the interim order granted by the Hon'ble Supreme Court, the present appeals may be adjourned. 7. We have heard the parties, perused the material on record and gave our thoughtful consideration. The issue involved in the Assessment Year 2013-14 and that of the present appeal ar....