https://www.taxtmi.com/caselaws?id=5057 Section 4(3)(vi) of the Income-tax Act, 1922 exempts only a special allowance, benefit or perquisite granted specifically to meet expenses wholly and necessarily incurred, or to be incurred, in performing the duties of an office or employment. The purpose of the grant is not decisive; the actual use of the amount controls its character. Any surplus retained after meeting the relevant expenses loses the nature of an expense allowance and becomes taxable as additional remuneration. The Finance Act, 1955 amendment reinforced this position by linking exemption to expenses actually incurred. Accordingly, exemption applied only to the extent the selling agency commission was actually and necessarily spent; the unspent balance was not exempt. en-us Wed, 19 Jul 1967 00:00:00 +0530 Wed, 19 Nov 2008 00:00:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=5057 Section 4(3)(vi) of the Income-tax Act, 1922 exempts only a special allowance, benefit or perquisite granted specifically to meet expenses wholly and necessarily incurred, or to be incurred, in performing the duties of an office or employment. The purpose of the grant is not decisive; the actual use of the amount controls its character. Any surplus retained after meeting the relevant expenses loses the nature of an expense allowance and becomes taxable as additional remuneration. The Finance Act, 1955 amendment reinforced this position by linking exemption to expenses actually incurred. Accordingly, exemption applied only to the extent the selling agency commission was actually and necessarily spent; the unspent balance was not exempt. Case-Laws Income Tax Wed, 19 Jul 1967 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=5057