Instructions to scrutinise the cases of claims of exemption of unreasonably high amounts - Income Tax - 565/CBDT

INSTRUCTION NO. 565/CBDT Dated : July 5, 1973 Section(s) Referred: 10(14) Statute: Income - Tax Act, 1961 Attention is invited to Board's Instructions on the Finance Act, 1955 wherein Income-tax Officers were instructed to scrutinise the cases of claims of exemption of unreasonably high amounts under section 4(3)(vi) of the I.T. Act, 1922. The corresponding provision in the I.T. Act, 1961 is Section 10(14). 2. The Board have, on a reconsideration of the question, decided that such cases should be checked occasionally so that only the allowances actually spent are allowed u/s 10(14). Such checks should be confined ordinarily to allowances of Rs.50 or more per day. 3. These instructions are being issued in supersession of earlier instructions on the subject and may be brought to the notice of all the officers working in the charge.