Shanti Prime Publication Pvt. Ltd.
Sec. 192 of Income Tax Act, 1961 - TDS - Revenue filed appeal against the order of Tribunal in confirming the order of CIT(A) of deleting the additions made by the AO under section 201(1) of the Act, 1961, and consequential interest charged by the AO in relation to the assessee’s payments to its employees under the head of uniform allowance. The present case relates to uniform allowance, which as noticed earlier is exempt from tax under section 10(14)(i) of the Act read with rule 2BB(1)(f) of the rules to the extent to which such expenses are actually incurred for that purpose. Under the Act, the liability to the employer is to deduct tax at source to the extent of the taxable income of the employee. If any part of such income is exempt, there is no liability to deduct tax at source from such income. Since liability to pay tax under the Act is of the individual employee and the liability on the part of the employer is only to deduct tax at source, Circular No.15 dated 8.5.1969 provides that self certification on the part of the employee is sufficient for the disbursing officer for calculation of the tax deductible at source. High Court dismissed the appeal of the revenue justifying the order of Tribunal. - CIT V/s OIL AND NATURAL GAS CORPORATION LTD -  316 CTR 354 (GUJ)