2007 (1) TMI 552 - HC - Income Tax

Tribunal upholds decision on conveyance allowance exclusion based on official use verification.

COMMISSIONER OF INCOME TAX Versus K.C. GOKHANI

The appeals were dismissed as the Tribunal's decision to exclude the additional conveyance allowance from the total income upon verification of ... - Issues involved: Interpretation of section 10(14) of the IT Act, 1961 regarding exemption of additional conveyance allowance received by an employee of LIC of India.Summary:1. The appeals arose from an order passed by the Tribunal regarding the inclusion of additional conveyance allowance in the income of the assessee for the assessment years 1992-93 and 1993-94. 2. The assessee, an employee of LIC of India, claimed exemption of additional conveyance allowance under section 10(14) of the IT Act, 1961. The claim was initially rejected due to lack of evidence showing the allowance was spent exclusively for employment purposes. 3. The CIT(A) accepted partial exemption of the allowance, but the Tribunal allowed the deduction based on the reimbursement nature of the allowance by LIC, subject to verification of utilization by the assessee. 4. The Tribunal emphasized the importance of proving the actual utilization of the additional conveyance allowance for official duties, as seen in a previous case involving a Development Officer of LIC. 5. The Tribunal's decision was consistent with previous instances where the issue was remitted back to the Assessing Officer for verification, and exemption was granted upon furnishing proof of utilization for official duties. 6. The Court found no legal question arising from the Tribunal's decision, as it was based on factual findings regarding the utilization of the additional conveyance allowance for official purposes. 7. Therefore, the appeals were dismissed, as the Tribunal's direction to exclude the additional conveyance allowance from total income upon furnishing a certificate of utilization was deemed appropriate.