D.b.income Tax Appeal v. K.c.gokhani

D.B.INCOME TAX APPEAL NO.36/04(COMMISSIONER OF INCOME TAX-II,JODHPUR VS. K.C.GOKHANI) D.B.INCOME TAX APPEAL NO. 37/04(COMMISSIONER OF INCOME TAX-II,JODHPUR VS. K.C.GOKHANI) DATE :- 25.1.2007 HON'BLE MR. RAJESH BALIA,J.HON'BLE MR. CHATRA RAM JAT,J. Mr. Sangeet Lodha, for the appellant.Mr. Anjay Kothari, for the respondent. Heard learned counsel for the parties. These two appeals have arisen out of the sameorder passed by the Tribunal dated 7.5.2003. The assessee who is an employee of the LifeInsurance Corporation of India was in receipt of theconveyance allowance and additional conveyance allowancefrom its employer. These appeals relate to assessment year1992-93 and 1993-94 respectively. The assessee hasclaimed that the additional conveyance allowance receivedby him from his employer was not includible in his incomeu/s 10 (14) of the Income Tax Act, 1961. The claim of theassessee to exemption of the said allowance from income taxwas rejected inter alia on the ground that assessee has notfiled any proof or evidence that conveyance allowance was wholly and exclusively spent for the purpose of hisemployment. The CIT (Appeals) had accepted that additionalconveyance allowance to the extent of Rs. 33030/- only wasexempted. On appeal, the Tribunal had held that theadditional conveyance allowance is paid by the LIC towardsreimbursement of the actual expenses incurred by theDevelopment Office on account of conveyance in relation toperformance of their duties. The certificate for that effecthas been given by the LIC, therefore, the deduction ofconveyance allowance and additional conveyance allowancewas allowed to assessee subject to verification of utilisationof the said allowances by the appellant for the twoassessment years. In coming the aforesaid conclusion , the Tribunalhas also noticed that in the earlier assessment year the CIT(Appeals ) had himself restored the directions for freshadjudication before the assessing officer by giving anopportunity to the assessee to prove utilisation of theadditional conveyance allowance received by him for thepurpose of his employment. This court in D.B.Income Tax Reference No.57/95 CIT Vs. P.N.Verma decided on 10.4.2006, hasoccasion to consider the like question raised in relation tothe assessment year 1984-85 in the case of the respondentDevelopment Officer of LIC. The court found that allowing ordisallowing of additional conveyance allowance received bythe assessee from the employer was not dependent on anyinterpretation of the statute so as to give rise to any questionof law, but was dependent on the finding of fact about theactual utilization of additional conveyance allowance receivedby the assessee wholly, necessarily and exclusively for thepurpose of discharging his official duties. The finding whichis required to be reached on the basis of evidence and is afinding of fact and does not give rise to any question of law. Since in the present case the CIT (Appeals) inthe case of same assessee for assessment year 1991-92,remitted the issue back to the Assessing Officer for thisenquiry, the Tribunal for the two subsequent years alsoallowed the exemption under Section 10 (14) of the IncomeTax Act, 1961 on furnishing of proof for the utilisation ofthe amount for performance of the duties of the office. ARTI In these circumstances no question of law arisesfor consideration in this appeal. In view of the aforesaiddecision no interference is called for in this appeal alsowhere the tribunal has merely given direction to theAssessing Officer that the additional conveyance allowanceis not to be included in the total income on furnishing thecertificate of the utilisation. Accordingly these appeals fail and are hereby dismissed. (CHATRA RAM JAT),J. (RAJESH BALIA),J.