New Delhi: The Supreme Court has said that there is no need to provide proof of travel while assessing the conveyance and leave and travel allowance.
In a significant judgement, the bench comprising Justice SH Kapadia and Justice Aftab said that employers are under no statutory obligation to collect supporting evidence and furnish them to tax authorities.
The prevailing rules insist that any claims on LTA and conveyance should be supported by journey bills. The apex court order came in a plea by companies including Larsen &Toubro and ITI.
In its defence, the revenue department had argued that under Income tax Act 1961 it is obligatory to provide documents to show that the employee had actually utilised the LTA amount.