9911796707
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Issues:
1. Whether conveyance allowance received by the assessee is allowable under section 10(14) of the Income-tax Act, 1961? Analysis: The case involved the question of whether the conveyance allowance of Rs. 21,705 received by the respondent-assessee from his employer was allowable under section 10(14) of the Income-tax Act, 1961. The respondent-assessee, a Development Officer with the Life Insurance Corporation of India, claimed this amount as not taxable under section 10(14) as it was incurred wholly, necessarily, and exclusively in the performance of his office duties. The Assessing Officer disallowed the claim due to lack of evidence showing the actual utilization of the allowance for official purposes. This decision was upheld by the Commissioner of Income-tax (Appeals), but the Tribunal reversed it based on evidence provided by the LIC certificate and certain decisions, concluding that the allowance was indeed spent for discharging official duties. The Tribunal's decision was challenged on the grounds that the question of allowing or disallowing the conveyance allowance was based on factual findings regarding its utilization, not on a legal interpretation of the statute. The High Court agreed, stating that the matter of actual utilization of the allowance was a finding of fact, not a question of law. The Tribunal's reference of the question under section 256(1) was deemed unjustified as it did not involve a legal issue but rather a factual determination. The High Court clarified the requirements under section 10(14) for excluding special allowances from income, emphasizing that such allowances must be specifically granted to meet expenses wholly, necessarily, and exclusively incurred for official duties, and must actually be used for that purpose. In this case, it was established that the allowance met these conditions, and therefore, it was non-taxable under section 10(14). The Court concluded that the Tribunal's finding was based on factual evidence and did not raise any legal question, returning the statement of the case as it did not give rise to any question of law.
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