2004 (10) TMI 293

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....ng the rejection of claim of deduction of expenses towards travelling, conveyance and telephone incurred by the assessee, which were necessary for discharging his duties while holding the office as member of Legislative Assembly, Madhya Pradesh. 2. In support of these grounds, the learned Authorised Representative submits that rejection of aforesaid claim by applying provisions of s. 57(iii) in....

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....y because the assessee happens to be a member of State legislative. Without prejudice to these submissions, the learned Authorised Representative submits that the learned CIT(A) ought to have further appreciated that provisions of s. 10(14)(i) exempt such special allowance or benefit especially granted to meet expenses fully, necessarily and exclusively incurred in the performance of the duties of....

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.... Out of this income, the assessee claimed to have spent Rs. 37,016 towards telephone expenses and Rs. 42,000 towards travelling and conveyance expenses. The AO denied the claim of Rs. 79,016 (Rs. 37,016 + Rs. 42,000) on the basis that the assessee had not established nexus of the expenditure with income offered for taxation. The learned CIT(A) after considering the arguments advanced on behalf of ....

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....eived by the member of Madhya Pradesh Legislative Assembly enjoyed any exemption under s. 10(17) and as such formed part of his income under s. 2(24) of the IT Act, 1961. The learned CIT(A) also discussed the provision laid down under s. 57 of the Act and was of the view that the same does not provide for any deduction for such income. The learned CIT(A) accordingly, came to the conclusion that in....