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TMI Blog1987 (4) TMI 123X X X X Extracts X X X X X X X X Extracts X X X X ..... lity of company's car for private use in accordance with the existing orders of the Ministry of Finance. According to this instruction of the Ministry, the car facility can be used for private purposes on making certain payments, The non-duty use should not exceed 500 kms. Journeys between the residence to office and vice versa have been treated as duty runs. Since the question hinges at the use of the car between the residence and office, we will give the instruction regarding the Staff Car : " The undersigned is directed to refer to the Ministry of Finance, Department of Expenditure O.M. No. F2(18)/PC/64 dated 20-11-64 and the Bureau of Public Enterprises O.M. No. 2(142)/68-BPE(GM) dated 6-9-68 wherein the procedure regarding car facili ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... es. On appeal it was submitted to the Appellate Assistant Commissioner that he was paying Rs. 100 per month for the use of vehicle up to a distance of 500 Kms. and, therefore, the proviso to section 16 will not apply. The Appellate Assistant Commissioner did not accept this submission. The normal payment of Rs. 100 per month cannot be treated as payment on par with, say, hiring of a taxi. Since the vehicle has been provided to the appellant for use otherwise than wholly and exclusively for the performance of the assessee's duties, the proviso to section 16 will be applicable. 4 . The assessee is on further appeal. Shri B. Ramajoga Rao appearing for the assessee submitted that the assessee had not been using the car for his personal purpos ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... oyee, even then, so long as that vehicle is used wholly and exclusively in the performance of his duties, it will have no impact on his income and assessment, because the expenditure is entirely on account of the employer. At the other end of the spectrum there is a personal expenditure incurred by the assessee. Such expenditure has nothing to do with employment. If any allowance is given for meeting his personal travels that naturally will be in the shape of a remuneration. Leave Travel Allowance is one such case, unless it is specifically exempt as in the case of section covered by s. 10(5). 7. There is another type of expenditure on travel which is neither fully personal nor fully in the performance of duties. That is the expenditure i ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... anket allowance of standard deduction to everyone irrespective of whether the employer provides with conveyance for coming to the office would bring inequality. In order to remove this inequality the proviso is introduced which reduces the standard deduction to Rs. 1,000 in case where the employer has allowed the assessee the use of vehicle for this purpose. That is the meaning to be attributed to the expression " otherwise than wholly and exclusively in the performance of duties " appearing in the proviso. If there is material to show that the employer had provided a vehicle for coming to the office and going to the residence, then the case will be caught by the proviso. Now, turning to the facts of the case, it will be very easy to see th ..... X X X X Extracts X X X X X X X X Extracts X X X X
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