1981 (7) TMI 115

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....duction under s. 16(1). 2. The assessee is an Officer in the Life Issuance Corporation of India. The assessee declared sums of Rs. 25,575 for the asst. yr.1975-76, Rs. 17,940 for the asst. yr. 1977-78. However, as the time of hearing, before the ITO, the assessee filed a written representation claiming the allowance of Rs. 3,500 under s. 16(1) of the IT Act on the ground that the entire expenses on the maintenance, upkeep and running of the motor-car attributed to his personal use was borne by him and assessee such, there was no conveyance allowance provided by the employer to the assessee. The ITO was of the view that he was unable to agree with the stand taken by the assessee that he is entitled to the allowance of Rs. 3,500 under s. 1....

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.....52 Rs. 2,805.14 and Rs. 4,850.32 for the asst. yrs. 1975-76. 1976-77 and 1977-78 respectively towards maintenance of car and this was claimed to be exempt under s. 10(14). It was pointed out by the AAC that the ITO concluded the assessment proceedings under s. 143(3) and accepted out by the AAC that the ITO concluded the assessment proceedings under s. 143(3) and accepted that the amounts paid to the appellant by the LIC are exempt under s. 10(14). The AAC also pointed out that according to the CBDT's circular Instruction No. 1144 F.No.200/116/77-II(Al), dt. 27th Jan, 1978, an assessee should not be denied full relief under s. 16(1) if what he received in the name of conveyance or any other similar allowance is nothing but the reimbursemen....

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....maintenance of car and this was claimed to be exempt under s. 10(14). According to the AAC, the it accepted that the amount paid to the appellant by the LIC is exempt under s. 10(14). It was pointed out before us that according to the CBDT's Circular Instruction No. 1144 F. No. 200/116/77 IT (Al), dt. 27th Jan., 1978, the assessee is entitled to full relief under s. 16(1) If what he receives in the name of conveyance or any other similar allowance is nothing but the reimbursement of the expenditure actually incurred. The appellant also produced his salary certificate in order to prove the actual expenditure incurred by him, this was reimbursed by the LIC which was wholly and exclusively used for office purposes. Our attention was also drawn....