9911796707
TMI Blog2004 (8) TMI 70X X X X Extracts X X X X X X X X Extracts X X X X ..... f the association are set out, with reference to its constitution, it is not seen specifically pleaded that it is a registered or incorporated association. But since no objection on this ground was raised on behalf of the respondents, we do not think that it is necessary to further pursue the question of the maintainability of the writ petition at its instance. In the writ petition, the association has prayed for a declaration that the conveyance allowance and additional conveyance allowance paid to the Development Officers of the Life Insurance Corporation of India, including the Development Officers working with the 17 branches of the Jamshedpur Division of the Life Insurance Corporation of India, are exempted under section 10(14) of the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ries, had the obligation to deduct the income-tax on the said amounts at the time of payment of such amounts. In any case, even if a portion of it was liable to be exempted or excluded while completing the assessment of a particular assessee-Development Officer, it was a matter to be decided at the time of completing the assessment and, there was no question of the Life Insurance Corporation of India not being obliged to deduct at source the tax due on these payments. We may point out that neither the Union of India, nor the Income-tax Department has filed a formal counter affidavit in this court, though adequate time was granted to them for filing their counter affidavits. When the matter ultimately came up, counsel for the Department subm ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... liable to be exempted under section 10(14) of the Income-tax Act. The single judge having dismissed the writ petition on the basis that the position was covered by an earlier decision of the Rajasthan High Court in CIT v. Shiv Raj Bhatia [1997] 227 ITR 7 the appeal was filed. Therein, the Division Bench noticed that the decision relied on by the learned single judge related to incentive bonus paid by the Life Insurance Corporation of India to its Development Officers and the position was not the same regarding the conveyance allowance/additional conveyance allowance. The Division Bench ultimately held that the Development Officers of the Life Insurance Corporation of India are entitled to claim exemption under section 10(14) of the Income- ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... threshold, that there was no liability to tax on the amounts and consequently, there was no obligation on the Life Insurance Corporation of India in terms of section 192 of the Income-tax Act to deduct the tax at source on those amounts. Section 192 of the Act imposes an obligation on any person responsible for paying any income chargeable under the head "Salaries" to deduct income tax on the amount payable at the average rate of income tax computed on the basis of the rates enforced for the financial year in which the payment is made on the estimated income of the assessee under the head "Salaries" for that financial year at the time of making the payment. Rule 2BB of the Income-tax Rules, 1962 prescribes the allowances for the purpose of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... y income of the Development Officer and he will be entitled to exemption only as provided in section 10(14) of the Act on establishing the facts required to be established to claim the benefit of that exemption. It is not for the employer, here the Life Insurance Corporation of India, to decide what is the amount out of the conveyance allowance and the additional conveyance allowance, that could be claimed by an individual assessee as the expenses incurred wholly, necessarily and exclusively in the performance of his duties. That is a matter for decision by the Assessing Officer and it is for the individual assessee to prove before the assessing authority at the time of completion of the assessment, the amount liable to be exempted. In suc ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... leaving it to the individual assessee to raise his claim for exemption and establishing it at the time of completing the assessment against him. Therefore, the prayer for quashing the communication issued by the authority under the Income-tax Act in that behalf cannot be granted. Since we have taken this view, we are not inclined to examine in detail the various decisions brought to our notice by learned counsel appearing in the case. But essentially, what we understand from those decisions is that it is a matter of establishing the claim for exemption by the individual assessee at the time of completion of the assessment and he would be entitled to exemption under section 10(14) of the Act to the extent he is able to establish that a part ..... X X X X Extracts X X X X X X X X Extracts X X X X
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