2001 (2) TMI 50

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....ESH BALIA J.-Heard learned counsel for the parties. This is an application under section 256(2) of the Income-tax Act, 1961 (for short "the Act of 1961"), for directing the Income-tax Appellate Tribunal to raise two questions of law said to be arising out of the order of the Tribunal in ITA No. 490/JP of 1997 for the assessment year 1995-96, in view of the fact that Reference Application No. 41/Jo....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....ly, necessarily and exclusively for the performance of the duties of office?" The respondent is an employer within the meaning of the provisions of the Income-tax Act requiring him to deduct tax at source from salary payable to its employees. The respondent is a branch manager of the Life Insurance Corporation of India at Bhinmal. While disbursing the emoluments to the employees of the Life Ins....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

..... This plea did not find favour with the Assessing Officer as well as the Commissioner of Income-tax. However, on second appeal the Income-tax Appellate Tribunal held in favour of the respondent and it cancelled the demand raised under sections 201(1) and 201(1A) of the Act of 1961. The Tribunal observed that the Life Insurance Corporation has devised its own productivity parameters and to e....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

.... erroneous. The question whether the payments made on account of conveyance allowance and additional allowance without certifying and verifying that the amount of these allowances has been incurred wholly, necessarily and exclusively for the performance of the duties of office can be subjected to exemption under section 10(14), is a question of law inasmuch as it requires not only the consideratio....