TaxTMI 
TaxTMI 
2015 (2) TMI 720
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....ent years 1998-99 to 2000-01. 2. Since the controversy involved is identical, these income-tax appeals are being decided by this common order. 3. The appeals were admitted on the following questions of law : Question of law framed in I. T. A. No. 895 of 2008 and 144 of 2008 "(1) Whether, under the facts and in the circumstances of the case and in law, the Tribunal was justified in upholding the order of the Commissioner of Income-tax (Appeals) by following the decision of the jurisdictional High Court reported in Shivraj Bhatia v. Life Insur ance Corporation of India [2003] 260 ITR 41 (Raj) in spite of the fact that the decision deals with the issue of TDS ....
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....tion of India (for short, "LIC"). The respondent-assessee received an amount of Rs. 2,60,306 for the assessment year 1998-99 ; Rs. 1,56,057 for the assessment year 1999-2000 and Rs. 2,00,000 for the assessment year 2000-01 towards conveyance allowance and additional conveyance allowance from the LIC. Though the same was part of the salary certificate but the contention of the respondent-assessee was that the said amount has been incurred in development of the LIC business to receive the premium on account of various policies and the said amount is entirely exempt under section 10(14) of the Income-tax Act. The Assessing Officer (for short, "the AO"), in view of the judgment of this court (Single Bench) in the case of Shiv Raj Bhatia v. LIC ....
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....d on record, which was issued by the employer, namely ; LIC that the respondent-assessee had incurred the said amount wholly, necessarily and exclusively for the performance of the duties, therefore, in the light of section 10(14) of the Income-tax Act read with rule 2BB of the Income-tax Rules, allowed such claim. 6. Dissatisfied with the order of the Commissioner of Income-tax (Appeals), the matter was carried in appeal by the appellant-Revenue before the Income-tax Appellate Tribunal who also did not interfere with the findings of the Commissioner of Income-tax (Appeals) and dismissed all the three appeals of the appellant-Revenue. Hence, these appeals. 7. Smt. Parinitoo Jain, learned counsel for the appellant-Revenue, submitted th....
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....l Appeal No(s) 25058- 25059 of 2004. He contended that when the judgment of this court has been affirmed by the hon'ble apex court, then the instant appeals, even otherwise, deserve to be dismissed. 9. We have considered the arguments advanced by counsel for the parties. 10. For the present purpose, it would be fruitful to quote section 10(14) of the Income-tax Act, which provides ad infra : "10. (14) (i) any such special allowance or benefit, not being in the nature of a perquisite within the meaning of clause (2) of section 17, specifically granted to meet expenses wholly, necessarily and exclu sively incurred in the performance of the duties of an offic....
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....of the agents placed under his supervision by the corporation. (iii) To introduce suitable persons to the corporation for appoint ment as new agents. (iv) To act generally in such a way as to activise existing agents and motivate new agents so as to develop a stable agency force. (v) To render all such services to policyholders conducive to better policy servicing. (vi) To carry out the investigation of claims, revival of lapsed policies and liaison work in connection with S. S. S. business. (vii) To perform such other duties as may be entrusted to him." It is, thus, clear that the Development Officers of the Life Insurance Corporation are full-time employees of the corporation whose main task is to develop the business in....
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....dditional conveyance allowance is nothing but a reimbursement of the actual expenditure incurred by the Development Officers on account of conveyance in relation to the performance of their duties and the said expenditure has a close nexus to the performance of the duties and development of the insurance business, inter alia, by way of meeting several persons, to enroll new life insurance agents, to meet the customers for encouraging them to take insurance policies, etc. Therefore, in such circumstances, expenditures have to be incurred towards conveyance. Thus, in view of the above judgment, rendered by this court in the case of Shiv Raj Bhatia (supra), which has been affirmed by the hon'ble apex court (supra) the question of law is an....