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Issues:
1. Dispute over expenses claimed by the appellant. 2. Assessment of income based on gross receipts percentage. 3. Taxability of gratuity amount received by the assessee. Analysis: 1. The appellant, a LIC Agent, had his income returned and assessed for three years under appeal. The dispute mainly revolved around the expenses claimed by the appellant, who did not maintain regular books of accounts. The Assessing Officer (AO) found some expenses excessive and allowed only a portion of them based on Board's Circular, disallowing the rest. 2. The appellant, in the second appeal, provided a paper book with details of gross LIC commission received, income and expenses statements for the relevant years, insurance policies canvassed, and correspondence with the tax authorities. It was noted that the appellant had a widespread business, not limited to the branch he was attached to, with income assessment percentages varying over the years. 3. The Tribunal estimated the income at 55% of the gross receipts for the disputed years, excluding the gratuity amount subject to dispute for one year. Another issue was the taxability of a gratuity amount received by the assessee, which was claimed as exempt under section 10(10) of the IT Act. However, it was found that the gratuity did not fall under the exempt categories specified in the Act, leading to the denial of the exemption. 4. The Tribunal referenced a decision of the Hon'ble Andhra Pradesh High Court regarding the taxability of gratuity received upon retirement from LIC, which was not applicable in the present case. Consequently, the exemption claimed by the assessee was rightfully denied. As a result, the appeals were partly allowed based on the above considerations.
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