TaxTMI 
TaxTMI 
2006 (4) TMI 185
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....s appeal is directed against the CIT(A)'s order dated 19-8-2002 in the matter of assessment under section 143(3) for the assessment year 1997-98. Although the assessee has raised four grounds of appeal, the only grievance pressed before us is against the CIT(A)'s confirmation of Assessing Officer's action in declining exemption under section 10(14) in respect of "Uniform Making Expenses" and "Uniform Washing Expenses" and "Academic Research Allowance". The quantum of uniform making expenses and uniform washing expenses is Rs. 51,554 and quantum of academic research allowance is Rs. 13,560. 4. The assessee-appellant is an employee of Shipping Corporation of India Limited and is working as Electrical Officer on the Ships owned or operated ....
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....meeting expenses wholly, necessarily and exclusively incurred for the purpose of official duties, as may be prescribed, but the exemption is available only "to the extent to the which such expenses are actually incurred for that purposes". The Assessing Officer has disallowed the exemption only on the basis that there were insufficient proof for the expenses having been actually incurred. In appeal, the CIT(A) has also held that the appellant has not produced evidence regarding actual use of the allowances for the purpose for which the same were granted. Unlike the requirements of section 10(14)(ii) which provide for exemption of a prescribed allowance to the extent 'prescribed', under section 10(14)(i) exemption is indeed confined to the e....
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....nce Act, 1955. This amendment, it appears, resulted in considerable apprehension amongst the salaried employees as to how can they be expected to maintain meticulous details and evidence of expenditure incurred by them for the actual usage of allowance. To allay these apprehensions, the Central Board of Direct Taxes, on 1-8-1955, issued a circular which is reproduced below for ready reference. "Special allowance or benefit being reasonable and not disproportionately high. No details of expenses actually incurred need be asked for the purpose of granting exemption under section 4(3)(vi) of 1922 Act. The exemption under section 4(3)(vi) in respect of any special allowance or benefit will be available from the assessment year 1955-56 only t....
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....provisions of Income-tax Act, 1961, deemed to have been issued under the corresponding provisions of the new Act, and shall continue to remain in force accordingly. In other words, to the extent the legal provisions of 1922 Act and 1961 Act are in pari materia, circulars and instructions issued under the 1922 Act will also holds good. The expression view of the provisions of section 297(2)(k) it still holds good and continued to be in force. The expression used i.e., 'to the extent to which such expenses are actually incurred' being absolutely identical in both the Acts, the provisions of the above circular, in our humble understanding, apply under the 1961 Act as well. 9. In the light of the aforesaid circular it is not open to the reve....
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....any material to indicate or establish that the assessee has any unspent portion out of the allowances so paid to the assessee. The disallowance sustained by the CIT(A) therefore does not meet our approval, so far as objections taken by him are concerned. 10. There is, however, one more aspect of the matter, the CIT(A) has held that these allowances are in the nature of personal expenses and therefore exemption under the provisions of section 10(14) in respect of the same cannot be granted. Section 10(14)(1), categorically exempts, any such special allowance or benefit, not being in the nature of a perquisite within the meaning of clause (2) of section 17(2) specifically granted to meet expenses wholly, necessarily and exclusively incurre....