2006 (2) TMI 678

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....tion towards expenses, from the incentive bonus, over and above the standard deduction from salary? [3] Whether the Appellate Tribunal is right in law and on facts in directing the Assessing Officer to allow conveyance allowance under rule 2BB(1)(c) to the extent certified by the LIC as exempt u/s 10(14), without actual proof of such expenses having been incurred by the assessee? [4] Whether the Appellate Tribunal is right in law and on facts in directing the Assessing Officer to grant deduction of conveyance allowance despite the amended provisions of Section 10(14) read with rule 2BB(1)(c) of the Rules?" 2. Mr.M.R.Bhatt, the learned senior standing counsel appearing on behalf of the appellant has very vehemently assai....

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..... 4. Insofar as proposed questions No. 1 and 2 are concerned, the facts are that the assessee claimed 40% of the incentive bonus received by the assessee as expenses incurred for earning the said incentive bonus. The assessing officer disallowed the entire claim and hence, the assessee carried the matter in appeal before Commissioner (Appeals). The Commissioner (appeals) recorded in paragraph No.2.1 of his order fifteen different activities, for which, according to Commissioner (Appeals), "as a matter of fact, expenses were incurred". While doing so, the Commissioner (Appeals) has noted the total volume of business secured by the assessee for LIC, including number of policies issued and the amount of premium collected for and on behalf o....