1998 (11) TMI 3

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....ts and in the circumstances of the case and in law, the Income-tax Appellate 'tribunal was justified in holding that the 'CMRE' (conveyance maintenance reimbursement of expenditure) paid to the employee on the condition of ownership and possession of a vehicle amounts to conveyance allowance for official purposes fully exempt under section 10(14) regardless of the fact that the exemption is allowed only to the extent that 'the expenses which are wholly, necessarily and exclusively incurred in the performance of duties of an office'? 2. Whether, on the facts and in the circumstances of the case, there was any material before the Tribunal to hold that the assessee had an impression that such allowance is exempt under section 10(14) of the In....

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....s paid to the employees by ONGC, the amount disbursed under the scheme is not taken into account for the purpose of deducting tax at source on such sum. In other words, such disbursement at the time of deducting tax at source is not considered to be taxable in the hands of the employee. The Income-tax Officer has held that the amounts so disbursed to the employees are not fully exempt from tax under section 10(14) because the employees have not actually incurred expenses to the extent of the amount allegedly reimbursed or paid to the employees every month to meet such expenses and to that extent there has been short deduction at source. For this penalty proceedings under section 201(1A) and for interest chargeable on such short deduction un....