9911796707
TMI Blog2003 (6) TMI 194X X X X Extracts X X X X X X X X Extracts X X X X ..... 996-97. In both the cases, the AO observed that the information was sought from the LIC of India which has intimated that the assessee has not furnished any details or given any undertaking that he has actually incurred expenses to the extent of Rs. 43,229 and Rs. 82,061 wholly and exclusively for the purpose of employment. During the scrutiny proceedings also the fact was brought to the notice of the assessee vide different order-sheet entries and also vide detailed notice dt. 4th Feb., 1997. The assessee replied that the various allowances including the additional conveyance allowance are paid to the development officers of the LIC of India on the basis of appraisal itself which just means that such allowance are determined on the basis o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ) the assessee is in appeal before the Tribunal. 3. We have heard both the parties, Shri Ambrish Jaiswal, the assessee himself and Shri R.R. Prasad, learned Departmental Representative for the Revenue. On the basis of written submissions, the assessee contended that the AO had restricted the deduction for additional conveyance allowance to Rs. 10,000 only as against Rs. 43,229 claimed to have been incurred by the assessee. The said deduction was raised to Rs. 20,000 by the learned CIT(A). Both the authorities have failed to take into account the LIC s internal circulars in the matter. He has relied on the CO Circular Ref. No. Mktg./ZD/10/87 dt. 3rd March, 1987 which very explicitly states the various amounts upto which the amount reimburs ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ose of earning bonus. The claim of 40 per cent expenses has been made on the basis of decisions of the Tribunal which cannot be said to be general in nature and depend on facts and circumstances of each case. Hence, he has disallowed the claim against which the assessee went in appeal before the CIT(A) who has also confirmed the order of the AO against which the assessee is in appeal before us. 6. It has been held by the learned CIT(A) that the incentive bonus received by the development officer is nothing but part of salary within the meaning of s. 17 and therefore, income has to be computed under s. 16 and only deductions which are deductible under s. 16 are to be allowed against such income. The deduction at 40 per cent of incentive bo ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... h are made only by virtue of the development officer being the employee of the LIC. These payments are in the nature of commission which is calculated at the percentage of premium generated. Hence, they are exigible to tax as part of salary income. Once these payments are exigible to tax as salary then such employees cannot claim any deduction other than standard deduction under s. 16 of the IT Act. Hence, after having heard the assessee himself in person and the learned Departmental Representative and relying on the judicial pronouncement as cited above, we are of the view that no interference in the order of the CIT(A) is called for since incentive bonus partakes the character of salary. The same is confirmed. 8. Ground No. 3 which is c ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... and not business income. There is no business income except income from salary and other sources. Therefore, depreciation under s. 32 with regard to the car owned by the assessee is not admissible. 11. The assessee who appeared himself, contended that there is a direct contradiction in the orders of the IT authorities at various levels inasmuch as they have held that incentive bonus is a part of salary only entitled for no additional deduction except prescribed under s. 16 while accepting the fact that had details of expenses been maintained by the assessee, the admissibility of expenses against such amounts could have been considered. On the other hand, the learned Departmental Representative supported the orders of the authorities belo ..... X X X X Extracts X X X X X X X X Extracts X X X X
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