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TMI Blog2015 (2) TMI 720X X X X Extracts X X X X X X X X Extracts X X X X ..... ing exempt as per the norms set out by the LIC. It appears that the LIC has worked out conveyance and additional conveyance allowance to the Development Officers considering the expenditure incurred for procuring the business and it is fixed by a general formula having reference to the parameters of the business and, thus, the payment of conveyance and additional conveyance allowance is nothing but a reimbursement of the actual expenditure incurred by the Development Officers on account of conveyance in relation to the performance of their duties and the said expenditure has a close nexus to the performance of the duties and development of the insurance business, inter alia, by way of meeting several persons, to enroll new life insuranc ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... and nowhere it has been held that the conveyance allowance/additional convey ance allowance will be fully exempt from tax ? (2) Whether, under the facts and in the circumstances of the case and in law, the Tribunal was justified in upholding the exemption granted by the Commissioner of Income-tax (Appeals) under section 10(14) on the basis of the certificate of the employer declaring a part of conveyance allowance/additional conveyance allowance given to the assessee in respect of the expenses incurred wholly, necessarily and exclusively for official duties ? Question of law framed in I. T. A. No. 765 of 2008 (i) Whether, under the facts and in the circumstances of the case and in law, the Tribunal ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... as income as the respondent-assessee was unable to prove that the said amount was incurred exclusively for performance of duties of the employment. However, the respondent-assessee contended that the very nature of the amount granted by the employer, namely ; LIC is for the purposes of performance of duties of the employment and since the Development Officer is required to go from place to place to canvass the business, therefore, it was incurred exclusively in the performance of the duties of the employment. However, the Assessing Officer, in view of the judgment of this court, referred to supra, added the said amounts as income of the respondent-assessee in all the assessment years. 5. The matter travelled in appeal before the Commissi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... for the assessment year 1999-2000 and ₹ 2,00,000 for the assessment year 2000-01 was incurred by the respondent-assessee exclusively for the purposes of duty and neither evidence was led as to how the said amount was incurred nor details as to how the said amount was incurred, was placed on record. She contended that if the respondent- assessee had visited various places, then certainly details must have been kept by him and ought to have been placed on record so as to justify the claim but since no evidence was placed, therefore, the said amount was rightly added by the Assessing Officer and, accordingly, submitted that the Assessing Officer had correctly added the said amount. 8. Per contra, Mr. Achintya Kaushik, learned counsel ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... expenses at the place where the duties of his office or employment of profit are ordinarily performed by him or at the place where he ordinarily resides, or to compensate him for the increased cost of living, as may be prescribed and to the extent as may be pre scribed : Provided that nothing in sub-clause (ii) shall apply to any allow ance in the nature of personal allowance granted to the assessee to remunerate or compensate him for performing duties of a special nature relating to his office or employment unless such allowance is related to the place of his posting or residence ; 11. We may also state that the LIC is a statutory body. The duties of a Development Officer are provided under the relevant rules, which are extracted as ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... , as far as practicable in the area that may be allotted to him from time to time. The other duties and obligations include the duty to supervise and to guide the activities of the agents placed under the supervision of the Development Officers ; to recruit new agents so as to develop agency force ; and to act generally in such a way as to acti vate existing agents and to motivate new agents and to render certain services to policyholders. The officer is also required to perform such duties that are entrusted and assigned to him from time to time. 12. The conveyance allowance and additional conveyance allowance are paid to the Development Officers for meeting actual expenditure incurred by them in discharge of their field duties and thu ..... X X X X Extracts X X X X X X X X Extracts X X X X
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