TaxTMI 
TaxTMI 
2016 (8) TMI 1626
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.... Officer u/s 143(3) of the Income Tax Act, 1961 cannot be said as erroneous or prejudicial to the interest of the revenue and the learned Commissioner of Income Tax, Aurangabad is not justified in revising the order passed u/s 143(3) and making an addition of Rs. 3,89,838/- on account of conveyance allowance. Hence, learned Assessing Officer may be directed to delete the addition of Rs. 3,89,838/-. 02. Such other orders be passed as may be deemed fit and proper. 3. The issue arising in the present appeal filed by the assessee is against the jurisdiction exercised by the Commissioner of Income Tax, Aurangabad under section 263 of the Act. 4. Briefly, in the facts of the case, the assessee had furnished return of income disclos....
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....urther claimed deduction of Rs. 3,89,838/- on account of conveyance allowance and additional conveyance allowance from salary. The Commissioner was of the view that the said conveyance allowance as well as additional conveyance allowance was not allowable under section 10(14) of the Act. Therefore, show cause notice under section 263 of the Act was issued to the assessee. The assessee explained that the conveyance allowance and additional conveyance allowance received by him was reimbursement of conveyance expenditure incurred by the assessee, against which the LIC of India had issued certificate to the assessee and therefore, the said expenditure was to be allowed as exempt under section 10(14) of the Act. The Commissioner did not accept t....
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....ial escapement of income of more than Rs. 10 lakhs as per CBDT Circular dated 09.09.2010. 7. The learned Departmental Representative for the Revenue on the other hand, placed reliance on the order of Commissioner. 8. We have heard the rival contentions and perused the record. The issue arising in the present appeal is against the exercise of jurisdiction of revision arising in the present appeal is against the exercise of jurisdiction of revision by Commissioner under section 263 of the Act. Where the assessment order passed by the Assessing Officer is erroneous and prejudicial to the interest of Revenue, the Commissioner is empowered to exercise the jurisdiction under section 263 of the Act against such assessment order passed by the....
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....evenue by not considering the claim of deduction of Rs. 3,89,838/- on account of conveyance allowance and additional conveyance allowance from the salary. In view thereof, where the Assessing Officer had limited zone of exercising of his jurisdiction, non looking into the claim of assessee on account of conveyance and additional conveyance allowance cannot make the assessment order as erroneous. In any case, even if we take up the point that the Assessing Officer needed to widen its scrutiny, then the embargo is placed by the CBDT Circular that the permission is to be sought from the Administrative Commissioner where the escapement of income is more than Rs. 10 lakhs. The total expenditure claimed as deduction was Rs. 3,89,838/- and it is b....