Assessee-co-operative bank paid certain sum towards reimbursement of medical expenses and tea allowances incurred by bank employees. Assessee claimed said allowances as expenses. Assessing Officer disallowed the claim by invoking section 40(a)(ia) on ground that allowances were compensation paid to employees and disallowance was to be made for failure to deduct TDS. CIT(A) affirmed the order of the Assessing Officer. On appeal the Tribunal held that   allowances were given for tea and coffee in performance of their duties during banking hours only. Also medical expenses were reimbursed by virtue of agreement between employees and bank. Since reimbursement of medical expenses and tea allowance were incurred while doing business, same were allowable as expenses.  (AY. 2011-12)