Reg Tax Deduction

Sir,

I work for a semi conductor Company. I have an official telephone reimbursement of Rs.780/- per month. I have been informed by the accountant that there would be tax decuted from the same inspite of me producing the bills irrespective of the amount....

My question is: is there any rule that tax needs to be deducted for reimburables...if yes request to please forward me the details

Regards

Srivalli