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TMI Blog2017 (5) TMI 1157X X X X Extracts X X X X X X X X Extracts X X X X ..... sessment in assessee’s case after taking note of hon’ble apex court’s decision hereinabove. This first substantive ground in assessee’s appeal is accordingly declined Expenditure claimed against incentive bonus - There is no dispute that the LIC has issued a clarification way back w.e.f. 01.04.1989 entitling Development Officers for reimbursement to the extent of 30% of the incentive bonus granted to them. Hon’ble jurisdictional high court’s former judgment also caps the same @30%. Learned Departmental Representative vehemently contends that the assessee’s expenditure in question is much less than the one in hand. Mr. Popat strongly rebut the same by referring to assessee’s reply dated 30.12.2013 at page 6 of assessment order claiming the a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... cases nos. CIT(A)-XX/187/13-14, CIT(A)-XX/188/13-14 & CIT(A)-XX/189/13-14; respectively, in proceedings under section 143(3) r.w.s. 147 of the Income Tax Act, 1961; in short "the Act". 2. We notice at the outset that the assessee's first appeal ITA No.2771/Ahd/2014 raises the following substantive grounds: "The learned CIT(A) -XX, Ahmedabad has erred in law and on facts in- 1. Confirming the action of the AO in invoking the provisions of section 147 of the Act for the reasons as specified in the satisfaction note. 2. Confirming the action of the AO in disallowing the claim of expenses of ₹ 2,34,145/- from incentive bonus received from Life Insurance Corporation of India. 3. Confirming the action of the AO in disallowing the c ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ceived from authority of LIC of India is impermissible. In absence of proof of actual expense incurred and without certified by the employer that it is wholly necessarily and exclusively for the performance of duties. The claim of ₹ 40620/- on account of conveyance allowance is also impermissible. Considering the above I have reason to believe that the claim of the assessee on of Incentive bonus of ₹ 234145/-and conveyance allowance of ₹ 40620/- is wrong and impermissible. As such there is failure on the part of the assessee to disclose fully and truly all material facts necessary for the assessment for AY 2006-07, as a result of which income of ₹ 274765/-is chargeable to tax has escaped assessment. In view of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ncentive bonus in order to meet the corresponding expenses already stands settled in hon'ble jurisdictional high court's decision in CIT vs. Kiranbhai H Shelat & Ors. (1999) 235 ITR 635 (Guj) as reiterated in their lordships' latter decision in Tax Appeal No. 1005/2005 CIT vs. Nitinbhai T. Bhupatani decided on 08.02.2006. He therefore pleads that the Assessing Officer has committed a grave illegality in relying upon hon'ble M. P. high court's judgment in CIT vs. Gurudeo Singh Jaggi 267 ITR 763 taking a contrary view as upheld in hon'ble apex court in Special Leave Petition (supra). Mr. Popat contends that mere dismissal of Special Leave Petition against a non-jurisdictional high court's decision does not form a valid precedent. More so when ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... actual expenditure to be much more than the one in question. We find that the same has nowhere been controverted in assessment order. The Revenue's argument regarding quantification stands rejected. 9. We proceed further to notice that hon'ble jurisdictional high court's two decisions go contrary to hon'ble Madhya Pradesh high court's judgment as well as similar other precedents. The Revenue vehemently contends that hon'ble apex court's decision (supra) makes it very clear that hon'ble jurisdictional high court's judgment in case of Kiranbhai H Shelat (supra) is wrong. There is no dispute about this factual position. It however emerges that hon'ble jurisdictional high court's latter decision in Nithinbhai's case (supra) takes due note ther ..... X X X X Extracts X X X X X X X X Extracts X X X X
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