ITEM NO.102                 COURT NO.5                 SECTION IIIA

           S U P R E M E   C O U R T   O F   I N D I A                          RECORD OF PROCEEDINGS

                 CIVIL APPEAL NO(s). 989 OF 2005

COMMISSIONER OF INCOME TAX,BANGALORE & ANR.          Appellant (s)

                     VERSUS

M/S. I.T.I. LTD.                                     Respondent(s)

Date: 21/01/2009  This Appeal was called on for hearing today.

CORAM :         HON'BLE MR. JUSTICE S.H. KAPADIA         HON'BLE MR. JUSTICE AFTAB ALAM

For Appellant(s)     Mr. K. Rdhakrishnan, Sr.Adv.                      Mr. Arijit Prasad, Adv.                      Mr. Rahul Kaushik, Adv.                      Mr. Tapeshwar Singh, Adv.                      Mr. B.V. Balaram Das,Adv.

For Respondent(s)    Mr. T.L. Vishwanatha Iyer, Sr.Adv.                      Mr. Rajiv Tyagi,Adv.                      Mr. Chanchal Biswal, Adv.                      Mr. Vikas Mishra, Adv.

                           UPON hearing counsel the Court made the following                            O R D E R  

The appeal is dismissed with no order as to costs.

         (S. Thapar)         PS to Registrar

(Madhu Saxena) Court Master

The signed order is placed on the file.

IN THE SUPREME COURT OF INDIA

CIVIL APPELLATE JURISDICTION

CIVIL APPEAL NO. 989 OF 2005

COMMISSIONER OF INCOME TAX, BANGALORE & ANR. ...APPELLANT (S)

VERSUS

M/S I.T.I. LIMITED        ...RESPONDENT(S)

     O R D E R

A short question which arises for determination in this Civil Appeal is – whether

the assessee was under statutory obligation under Income Tax Act, 1961, and/or the Rules to

collect evidence to show that its employee(s) had actually utilized the amount(s) paid towards

Leave Travel Concession(s)/Conveyance Allowance?  

It  may be  noted  that  the  beneficiary of  exemption under Section  10(5)  is  an

individual employee.  There is no circular of Central Board of Direct Taxes (CBDT) requiring

the  employer under Section  192  to  collect  and  examine the  supporting evidence  to  the

Declaration to be submitted by an employee(s).

For  the  above reasons  there is  no merit  in the  Civil  Appeal  and the  same is

dismissed with no order as to costs.

....................J. [ S.H. KAPADIA ]

New Delhi, ....................J January 21, 2009 [ AFTAB ALAM ]