Every judge is entitled to conveyance allowance of Rs.300 per month subject to maintenance of motor car. - Income Tax - 1088/CBDT

INSTRUCTION NO. 1088/CBDT Dated : August 12, 1977 Section(s) Referred: 10(14) Statute: Income - Tax Act, 1961 Reference is invited to Circular No.196* (F.No.275/47/76-IT(j) dated 31.3.76). The Department has received a reference from the High Court Judges regarding the applicability of the above circular in respect of the Conveyance Allowance paid to the High Court Judges under Section 22B of the High Court Judges (Conditions of Service) Amendment Act. Under this provision every judge is entitled to a conveyance allowance of Rs.300 per month subject to the maintenance of motor car by him. 2. It has been represented that the condition laid down in para 3 of the above circular requiring the employee to furnish a certificate that the Conveyance Allowance is only a reimbursement of expenses laid out wholly, necessarily and exclusively for the performance of the duties of an office should be dispensed with. 3. The Board have considered these representations and having regard to the amount of conveyance allowance granted to the judges and the expenditure that is normally incurred in the running of a motor car, are of the view that the amount would fall within the purview of section 10(14) of the Income-tax, 1961 and the I.T.O.s need not be too metiulous to enquire whether conveyance expenses to the extent of the allowance have actually been incurred. The Board is further of the view that since the Judges draw their own bills there would be no necessity of asking the High Court Judges to furnish a separate certificate before the Income-tax Officer that the allowance is a reimbursement of the expenditure laid out to meet expenses wholly, necessarily or exclusively incurred in the performance of duties of an office. 4. The Circular No.196 referred to above would stand modified to this extent.