2003 (7) TMI 15 - HC - Income Tax

Conveyance and additional conveyance allowance paid to employee of the LIC - Whether, Tribunal was justified in holding that the conveyance and additional conveyance allowance paid to the appellant who is an employee of the LIC is not exempt under section 10(14)(ii) of the Income-tax Act, 1961? - Assessee has not produced evidence even before the Tribunal that the amount has been reimbursed only because of actual use of that amount for performance of duty during the course of employment. The Tribunal has rightly disallowed the deduction claimed for - We find no infirmity in the impugned order. Therefore, the appeal stands dismissed.

Summary

The High Court of Rajasthan dismissed the appeal regarding the exemption of conveyance and additional conveyance allowance for an employee of LIC under section 10(14)(ii) of the Income-tax Act, 1961. The court upheld the decision that the allowance must be actually used for the performance of duties, and since the appellant failed to provide evidence of actual use, the deduction was rightly disallowed. The appeal was dismissed.