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The High Court held that the ITAT was justified in allowing the assessee's appeal. The Tribunal had made a categorical finding that the assessee had reimbursed employees' LTC expenses after obtaining all information in the prescribed proforma. The Court noted that the assessee's accounts were audited by CAG-appointed auditors who found no discrepancies. The AO had also failed to point out any specific instance of fraudulent or incorrect certificates being used for reimbursement. The Tribunal's finding that the declaration filed by the assessee provided full details of the journey and expenses, and that the assessee's action was bonafide, was upheld. The Court also noted that similar appeals for subsequent assessment years involving the same issue had already been dismissed. Therefore, no substantial question of law arose, and the appeal was dismissed.
