2006 (4) TMI 100

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.... in relation to the assessment year 1984-85 in respect of the claim in question: "Whether, on the facts and circumstances of the case, the Tribunal was right in holding that conveyance allowance of Rs. 21,705 received by the assessee from his employer was allowable under section 10(14) of the Act?" The respondent-assessee was serving as a Development Officer with the Life Insurance Corporation of India during the relevant period and he had received additional conveyance allowance of Rs. 21,705 from his employer. The assessee had claimed this amount as not taxable in his hand under section 10(14) of the Income-tax Act, 1961, as he had received such allowance as expenditure incurred wholly, necessarily and exclusively in the performance....

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....ich is required to be reached on the basis of evidence is a finding of fact and does not give rise to any question of law. We are of the opinion that the Tribunal was not justified in referring the aforesaid question as a question of law under section 256(1) arising from the order of the Tribunal in appeal. It was nowhere the question before any authority that additional conveyance allowance received by the assessee was not to be excluded from his income under section 10(14). What was in the contention was whether the condition about utilization of amount has been established by leading cogent evidence. The Assessing Officer has denied the claim of the assessee by saying that no evidence has been led in support of the above. The Tribunal....

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....ally incurred for that purpose. Therefore, two conditions required for exclusion of the amount received as special allowance during the employment are that firstly, it must not have been granted to the assessee by way of perquisite but specifically granted to meet expenses wholly, exclusively and necessarily for the purpose of official duties. Secondly, it must have been actually used by the assessee for the purpose for which it has been granted. Both the conditions required for operation of section 10(14) are the factual foundation on which section 10(14) operates. The factual foundation establishes the exclusion of special allowance received by the assessee to meet such expenses to use the allowance for discharging his duties becomes n....