COMMISSIONER OF INCOME TAX Vs. SEMICONDUCTOR COMPLEX LTD

JUDGEMENT

(1.) THE Revenue has invoked the jurisdiction of this Court under Section 260A of the IT Act, 1961 (for brevity 'the Act') by preferring the instant appeal against the order of the Tribunal, Chandigarh Bench B for challenging the order dt. 21st March, 2006 passed in ITA Nos. 727 and 728/Chandi/2002. IT Appeal Nos. 503 and 504 of 2006 are being taken up together as the question of facts and law are common.

(2.) BRIEF facts may firs(sic) noticed.

(3.) AFTER hearing learned Counsel, we are of the view that once the Tribunal has recorded a categorical finding that the assessee had reimbursed the expenses incurred by its employees for LTC after obtaining all the information in the prescribed proforma then the assessee is entitled to exemption. Moreover, the accounts were subjected to verification by the auditors appointed by the Comptroller and Auditor General of India and no discrepancy has been pointed out by the auditors. The AO has failed to point out any specific instance where the expenses have been reimbursed to an employee on the basis of a fraudulent or wrong certificate given by him/her. Moreover, there are categorical findings by the Tribunal that the exemption for LTC deserved to be granted to the assessee company because the declaration filed in the prescribed proforma by the assessee gives full details of journey undertaken by the employee and the expenses actually incurred by them. The action of the assessee company has been found to be bona fide.