9911796707
TMI Blog2006 (4) TMI 64X X X X Extracts X X X X X X X X Extracts X X X X ..... r the assessment year 2000-01: "Whether on the facts and in the circumstances of the case the Hon'ble ITAT has erred in holding that the payment made to its Development Officer by the LIC of India under the Reimbursement of Expenses Scheme, 1997 is not the income of the assessee and further it is not a part of salary of the recipient D.O. ignoring the factual position that details of expenses incurred have not been reported to the Branch Manager (Paying Officer) on the basis of which it could be inferred that these allowances were the reimbursement of actual expenses ?" 2.The Income Tax Officer rejected the contention of the assessee to the effect that in the year 1997 Life Insurance Corporation of India framed two separate Schemes, nam ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... to be deducted thereon. 5.The assessee went in appeal before the Commissioner of Income Tax (Appeals) against the order of Income Tax Officer which was accepted on the ground that the earlier appeal of Barnala Branch filed by Life Insurance Corporation of India for the year 1999-2000 had been accepted on the same issue. 6.The Revenue went in appeal before the Tribunal against the order passed by the Commissioner of Income Tax (Appeals) and reiterated it's stand that the payments made to Development Officer under Reimbursement of Expenses Scheme, 1997, are to be treated as part of the salary of the Development Officer, hence, TDS was required to be deducted thereon. On the other hand, the assessee, inter alia, referred two earlier order ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... . (vii) To perform such other duties as may be entrusted to him." It is, thus, clear that the Development Officers of the Life Insurance Corporation are full-time employees of the corporation whose main task is to develop the business in life insurance. They are required to discharge the duties and obligations which, inter alia, include development of life insurance business of the corporation. The very first duty enumerated for the Development Officer is to develop and increase the production of new insurance business in the planned way, 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 th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... worked out the additional conveyance allowance to the Development Officers considering the probable expenditure for procuring the business. The Life Insurance Corporation appears to have devised the general formula having a reference to the para-meters of the business and, thus, the payment of additional conveyance allowance is a reimbursement for actual expenditure incurred by the Development Officers on account of conveyance in relation to performance of their duties and the said expenditure has a direct nexus with the performance of duties for development of the insurance business by way of meeting several people and to enrol new life insurance agents and to meet the insurance persons for encouraging them to take insurance policies. Nat ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ontentions of the parties and also keeping in view the fact that the Revenue had not challenged the earlier orders passed by the Tribunal on the same issue, pertaining to different offices of LIC, upheld the order passed by the Commissioner of Income Tax (Appeals) and dismissed the appeal of the Revenue. 9.For the reasons given above and respectfully concurring with the view taken by Rajasthan High Court in L.I.C.'s case (supra),[2003]260 ITR 41, we do not find any reason to differ with the view taken by the Tribunal and hold that no substantial question of law arises in the present case. 10.Faced with this the counsel for the Revenue raised the plea that the expenses claimed by the assessee were not admissible to the extent that th ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
