Assessee company made payment to its employees towards reimbursement of expenditure incurred by them towards uniform without deducting tax at source for reason that such payment towards uniform allowance was exempt under section 10(14)(i) of the Act . The AO held that  the  assessee had not deducted TDS merely on basis of self-certification given by concerned employees that they had incurred such expenditure towards uniform without verifying whether such expenditure had actually been incurred by them or not   accordingly held that  the assessee was liable to deduct TDS under section 192 and, accordingly, made it liable for interest under section 201(1A).  CIT (A)  relying on the  CBDT Circular No. 15, dated 8-5-1969  held that the assessee is not liable to deduct tax at source . On appeal by the revenue the Appellate Tribunal affirmed the view of the CIT (A ) . On appeal by the revenue dismissing the appeal Court held that  since liability to pay tax under Act was of individual employee and liability on part of employer was only to deduct tax at source, self-certification on part of employees was sufficient for assessee not to deduct tax under section 192 on payment towards reimbursement of expenditure incurred by employees for uniforms  and  if Assessing Officer had any doubt about claim made by any individual employee, he could take upon issue during course of assessment proceedings of such individual employee . (AY. 2010-11)

Assessee company made payment to its employees towards reimbursement of expenditure incurred by them towards uniform without deducting tax at source for reason that such payment towards uniform allowance was exempt under section 10(14)(i) of the Act . The AO held that  the  assessee had not deducted TDS merely on basis of self-certification given by concerned employees that they had incurred such expenditure towards uniform without verifying whether such expenditure had actually been incurred by them or not   accordingly held that  the assessee was liable to deduct TDS under section 192 and, accordingly, made it liable for interest under section 201(1A).  CIT (A)  relying on the  CBDT Circular No. 15, dated 8-5-1969  held that the assessee is not liable to deduct tax at source . On appeal by the revenue the Appellate Tribunal affirmed the view of the CIT (A ) . On appeal by the revenue dismissing the appeal Court held that  since liability to pay tax under Act was of individual employee and liability on part of employer was only to deduct tax at source, self-certification on part of employees was sufficient for assessee not to deduct tax under section 192 on payment towards reimbursement of expenditure incurred by employees for uniforms  and  if Assessing Officer had any doubt about claim made by any individual employee, he could take upon issue during course of assessment proceedings of such individual employee . (AY. 2010-11)