Expense deduction limits: total car allowances across salary and professional heads cannot exceed actual expenditure. Conflict in car-related deductions occurs when allowances claimed under salary and professional heads together exceed actual expenditure. Heads of income are mutually exclusive, so the aggregate allowance must not surpass real expenditure; an assessing officer should allow only the residual unreimbursed expense (or a proportion reflecting private use) against professional income in addition to any sum already allowed from salary. Officers are to be instructed to prevent duplicated or excessive allowances and to limit total deduction to the actual expenditure.
Cases where this provision is explicitly mentioned in the judgment/order text; may not be exhaustive. To view the complete list of cases mentioning this section, Click here.
Provisions expressly mentioned in the judgment/order text.
Expense deduction limits: total car allowances across salary and professional heads cannot exceed actual expenditure.
Conflict in car-related deductions occurs when allowances claimed under salary and professional heads together exceed actual expenditure. Heads of income are mutually exclusive, so the aggregate allowance must not surpass real expenditure; an assessing officer should allow only the residual unreimbursed expense (or a proportion reflecting private use) against professional income in addition to any sum already allowed from salary. Officers are to be instructed to prevent duplicated or excessive allowances and to limit total deduction to the actual expenditure.
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