2015 (9) TMI 1116

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....he order of Commissioner of Income Tax (Appeals) allowing the Additional Conveyance allowance as an eligible exemption under section 10(14) of the Income Tax Act, 1961 in view of circular no.701 dated 20.03.1995 and guideline framed by the CBDTF No.275/11/2001-IT(B) dated 1.02.2001 ?" Since there are typographical mistakes, the question no.2 is reformulated in the manner as under : "Whether on the facts and in the circumstances of the case, the Tribunal was justified in law in allowing additional conveyance allowance in terms of notification no.GSR 606 (E) dated 9th June, 1989 where it is clearly specified that any allowance granted to meet the expenditure incurred on conveyance in the performance of duties of an office or employment ....

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....imilar cases as also my own decision in a number of such cases relied upon in support of the case. I have considered the submissions made and looked into the material on record. The Assessing Officer has based the disallowance on the fact that a major part of the additional conveyance allowance was not subjected to tax deduction at source. This may be because the final details of the expenses incurred could not be submitted before the last of making the TDS from the total of the financial year concerned. In any case, it does not vitiate the appellant's claim for full exemption u/s 10(14) of the I.T.Act in view of the two certificates from the Manager, LICI of the concerned branch. The assessing officer is directed to treat both the re....

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....ct in respect of conveyance allowance/additional conveyance allowance upon satisfying the conditions that such allowances have been actually spent for the purpose they were given. In view thereof, we do not find any infirmity in the direction of the Ld.CIT(A) to direct the Assessing Officer to delete the disallowances. In view of the issue being covered by the Coordinating Benches of Kolkata which also supported the decision of the various High Courts as cited on by the Ld.counsel, we have no hesitation in dismissing the appeal filed by the revenue. In the result, the appeal filed by the revenue is dismissed." Md.Nizamuddin, learned advocate for the appellant, relying on the judgement of Commissioner of Income Tax v. E.A.Rajendran rep....