2011 (5) TMI 1037 - AT - Income Tax

ITAT Upholds Assessment Reopening for A.Y. 1996-97 & 1997-98: Salary Income Classification, Allowance Reconsideration

Santosh Gupta L/H of Late Shri Suresh Gupta, Versus Income-tax Officer, Ward 44 (2), New Delhi

The ITAT upheld the reopening of assessments for A.Y. 1996-97 and 1997-98. The Tribunal considered expenses under section 10(14) but classified the ... - Issues involved: Reopening of assessment, additions on merit regarding conveyance allowance, additional conveyance allowance, and incentive bonus.Reopening of assessment: The ITAT upheld the reopening of assessments in the consolidated order dated 29-10-2009 for A.Y. 1996-97 and 1997-98.Additions on merit - Conveyance allowance, additional conveyance allowance, and incentive bonus: The Tribunal considered the expenses incurred by the assessee in the performance of duties of office of employment, covered under section 10(14). However, the incentive bonus for the Asstt. year 1997-98 was held as salary income and needed to be added accordingly. The Tribunal partly allowed both appeals of the assessee based on these findings.Recall of Tribunal's order: The assessee filed a copy of Tribunal's order dated 17-2-2006 for the same assessment years, which had not been considered while deciding the merits of the case. After hearing both parties, the Tribunal decided to partly recall the order to reconsider the issue of the allowability of conveyance allowance, additional conveyance allowance, and incentive bonus. The appeals were to be posted for a hearing on the recalled issue after issuing notices to both parties.Conclusion: Both the miscellaneous applications of the assessee and the revenue were allowed in the above terms, with the order pronounced in open court on 13-05-2011.