STATE BANK OF INDIA vs. THE ASSISTANT COMMISSIONER

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IN THE HIGH COURT OF KARNATAKA AT BENGALURU DATED THIS THE 20TH DAY OF FEBRUARY, 2023 PRESENT THE HON'BLE MR JUSTICE P.S.DINESH KUMAR AND THE HON'BLE MR JUSTICE RAMACHANDRA D. HUDDAR INCOME TAX APPEAL NO. 305 OF 2019

BETWEEN:

STATE BANK OF INDIA LOCAL HEAD OFFICE ST.MARKS ROAD BENGALURU - 560 001 REPRESENTED BY ITS ASSISTANT GENERAL MANAGER SMT. SHYLAJA MAIYA D/O SRI. M.R. MAIYA AGED ABOUT 59 YEARS …APPELLANT

(BY MS. JINITA CHATERJEE, ADVOCATE FOR SHRI. S. PARTHASARATHI, ADVOCATE)

AND:

THE ASSISTANT COMMISSIONER OF INCOME TAX (TDS) CIRCLE-18(2), [TDS CIRCLE-3(1)] NO.59, HMT BHAVAN BELLARY ROAD BENGALURU - 560 032 …RESPONDENT

(BY SHRI. M. DILIP STANDING COUNSEL FOR SHRI. E.I. SANMATHI, STANDING COUNSEL)

THIS ITA IS FILED UNDER SEC.260-A OF INCOME TAX ACT 1961, ARISING OUT OF ORDER DATED 28.09.2018 PASSED IN ITA NOS.1099, 1102 AND 1103/BANG/2017, FOR THE ASSESSMENT YEARS 2011-12, 2012-2013 AND 2013-2014 PRAYING TO

Digitally signed by ANUSHA V Location: HIGH COURT OF KARNATAKA

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FORMULATE THE SUBSTANTIAL QUESTIONS OF LAW STATED THEREIN AND ALLOW THE APPEAL, SET ASIDE THE ORDER OF THE INCOME-TAX APPELLATE TRIBUNAL DATED 28.09.2018 IN SO FAR IT PERTAINS TO THE APPELLANT’S APPEALS IN ITA NOS.1099, 1102 AND 1103/BANG/2017, FOR THE ASSESSMENT YEARS 2011-12, 2012-2013 AND 2013-2014 AND ETC.

THIS ITA, COMING ON FOR FINAL HEARING, THIS DAY, P.S.DINESH KUMAR, J., DELIVERED THE FOLLOWING:

JUDGMENT

This appeal by the assessee directed against order dated September 28, 2018 in ITAs No.1099, 1102 and 1103/Bang/2017 for the Assessment Years 2011-12, 2012-2013 and 2013-2014 passed by the ITAT1, Bengaluru, has been admitted to consider the following questions of law; “(i) Whether the Tribunal was justified in upholding the levy of tax under Section 201(1) and interest under Section 201(1A) of the Act as determined by the TDS authority?

(ii) Whether denial of exemption under Section 10(5) of the IT Act, 1961 rws Rule 2B of the IT Rules, 1962 of reimbursement of leave travel expenses as claimed by the employee of the appellant was justifiable?

(iii) Whether the employee of the appellant was not eligible for exemption in respect of travel from the place of departure to the place of destination by shortest route

1 Income Tax Appellate Tribunal

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even when the employee travels in circuitous route which included foreign leg?

(iv) Whether the Tribunal was justified in holding that in light of the provisions of Section 10(5) of the IT Act, 1961 rws Rule 2B of the IT Rules, 1962, when the employee has undertaken circuitous route which included foreign leg, the exemption is totally denied without considering the expenditure involved by the shortest route from the place of departure to the place of destination when both the places are within India?

(v) Whether the failure to afford an opportunity to the appellant to furnish the details with regard to the expenditure in relation to the shortest route of travel in the case of employee to avail the benefit of exemption under Section 10(5) of the IT Act, 1961 was violation of principles of natural justice and the order of the Tribunal to that extent was sustainable?”

2 [2022] 144 taxmann.com 131 (SC)

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of the Revenue. The same is not refuted by Ms.Jinitha Chaterjee.

ORDER (i) Appeal is dismissed; and (ii) Questions of law are answered in favour of the Revenue and against the assessee.

No costs.

Sd/- JUDGE

Sd/- JUDGE