ITAT Bangalore Judgments — July 2024

The Tribunal held that LTC for foreign travel is not exempt under Section 10(5) of the Income Tax Act, and therefore, the assessee was liable to deduct TDS. The Supreme Court's decision in the assessee's own case affirmed this position.

The Tribunal acknowledged that the assessee could not respond to notices due to COVID-19 and that the notices from the CIT(Appeals) might not have been received. In the interest of justice, the matter was remitted to the AO for fresh consideration.

The Tribunal held that the AO's order was ex-parte and that the assessee failed to provide necessary details to support the source of the deposits. However, the issue of cash deposits during demonetization was remitted to the NFAC for fresh consideration, requiring an opportunity for the assessee to be heard and a remand report from the AO. The addition of estimated business income was upheld.