Reimbursement to employee during their stay abroad - Non Taxable

Reimbursement to employee during their stay abroad - Non Taxable

IN THE HIGH COURT OF JUDICATURE AT BOMBAY

The Relevant Text of the Order as follows : 17. In so far as the second issue is concerned, it relates to the amounts paid by the assessee to its employees towards overseas maintenance allowance. These amounts were paid towards expenses at the rate of IEP 50 per day per employee. The Tribunal has correctly held that these amounts constitute only reimbursement for the expenses incurred by the employees at a particular amount per day and would not form part of the salary in the hands of the recipients. Hence the question of applying sub clause (iii) of sub­section (a) of Section 40 would not arise. The view of the Tribunal is correct and would not raise any substantial question of law.