TaxTMI 
TaxTMI 
2000 (1) TMI 35
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....unal in ITAs No. 5975 to 5992/Delhi of 1996, for the opinion of this court : "1. Whether, on the facts and in the circumstance of the case, the Tribunal was right in coming to the conclusion that the assessee was under a bona fide belief that no tax is deductible at source from the conveyance allowance reimbursed to the employees when the same were not exempt under section 10(14) of the Income-tax Act and were also not disclosed by the assessee in from no.16 which contains a specific column form allowance exemption under section 10(14) of the Income-tax Act ? 2. Whether, on the facts and in the circumstances of the case, the Tribunal was right in holding a view that reimbursement of conveyance expenses to cover expenditure for the pur....
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....d not been provided with company vehicle, against declaration that they had actually incurred the said amount for the purpose of conveyance from office to residence ; it was being paid at a fixed amount every month due to administrative convenience for saving the assessee-company and its employees from the cumbersome and heavy work of maintaining detailed record of expenditure and, therefore, its was exempt under section 10(14) of the Act. It was pleaded that the said allowance could not be treated as a perquisite within the meaning of section 17(2) either and the same was also exempt under notification dated June 9, 1989. However, the said explanation did not find favour with the Assistant Commissioner. Accordingly, while observing that....
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....allowance. It is confined to conveyance allowance alone. In this context, it may be stated that whether the particular allowance is taxable or not, would depend on the view adopted by the Assessing Officer while framing the assessment in the case of the employee at the time of deduction of tax at source. The employer is required to have a broad picture of the estimated income which is to be subject to tax. The Department could not successfully show that the assessee's conduct in not deducting tax at source was a mala fide one for which the penalty was leviable in its hand. In view of the various decisions of the Tribunal, namely, Industrial Credit and Investment Corporation of India ; Great Eastern Shipping Co. Ltd. v. ACIT (ITA Nos. 6201 t....
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....enses incurred on conveyance were nothing but conveyance allowance not exempt under section 10(14) of the Act. On the other hand, the stand of learned counsel for the assessee is that the aforenoted finding about the conduct of the assessee is a pure finding of fact, giving rise to no question of law. In our view, the proposed questions are not fit for reference to this Court. From the afore-extracted portion of the order of the Tribunal it is evident that the Tribunal's finding that the assessee had a good and sufficient reason for not deducting tax at source on the said amount is founded on the fact that it was under a bona fide belief that the conveyance allowance was not to be included in the salary. The conclusion arrived at by the ....