Commissioner Of Income Tax,Bangalore vs M/S. I.T.I. Ltd

The Supreme Court dismissed the Civil Appeal No. 989 of 2005, determining that the assessee (employer) was not under a statutory obligation under the Income Tax Act, 1961, to collect evidence regarding the utilization of Leave Travel Concession or Conveyance Allowance by employees. The Court clarified that the exemption under Section 10(5) pertains to individual employees and there is no requirement from the Central Board of Direct Taxes (CBDT) for employers to verify such claims. Consequently, the appeal was dismissed with no order as to costs.