Section 10(14) exemption for allowances requires a specific notification or strict duty-related expense nexus.

Section 10(14) exempts only special allowances or benefits specifically granted to meet expenses wholly, necessarily and exclusively incurred in the performance of duties, or allowances notified by the Central Government for personal expenses at the place of duty or for increased cost of living. In the absence of any notification covering the allowances in question, the assessee failed to establish entitlement to exemption, and the relief claim was rejected.

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Issues: Whether the allowances claimed by the petitioner were exempt from income-tax under section 10(14) of the Income-tax Act, 1961 in the absence of a notification by the Central Government.

Analysis: Section 10(14), as amended, exempts only such special allowance or benefit as is specifically granted to meet expenses wholly, necessarily and exclusively incurred in the performance of duties, or such allowance as is notified by the Central Government for meeting personal expenses at the place of duty or for compensating increased cost of living. No notification was shown to cover the allowances in question, and the petitioner could not establish entitlement to the claimed exemption.

Conclusion: The allowances were not held exempt from income-tax, and the claim for relief failed.

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