9911796707
TMI Blog1993 (3) TMI 45X X X X Extracts X X X X X X X X Extracts X X X X ..... y and Rs. 7,260 by way of pension. The assessee thus appears to have retired during that year and, therefore, for a part of that year he received salary and for the remaining part he received pension. The assessee claimed deduction of Rs. 2,110 on the total amount of salary and pension received by him. The Income-tax Officer granted proportionate standard deduction of Rs. 7,045 (sic) in respect of the salary income but refused to grant any standard deduction on the income received by the assessee by way of pension. The assessee, therefore, filed an appeal to the Appellate Assistant Commissioner but the appeal failed. The Tribunal allowed the second appeal filed by the assessee and, therefore, the Commissioner of Income-tax has approac ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... mployer of the assessee and the assessee is allowed the use of such motor car or all or any of such motor cars, otherwise than wholly and exclusively in the performance of his duties, the deduction under this clause shall not exceed one thousand rupees . . . ..." It was contended by him that the words 'in respect of expenditure incidental to the employment" also indicate that the said deduction was to be made available only if there was some expenditure incidental to the employment. Since the deduction was related to the expenditure, if there was no expenditure, there was no scope for granting any deduction. Thus learned counsel has relied upon the phraseology of the section in support of his contention and fairly stated that there is n ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... learned judges, the matter was referred to a third judge. Tewatia J. held that the view expressed by Goyal J. was preferable and further held that, by virtue of the deeming provision contained in section 17 whereby pension is regarded as salary, an employee would be treated in employment and expenditure incurred for the purpose of securing his pension had to be treated as expenditure related to his employment. The learned judge observed that (at page 8) : 'Salary is received by a person who is in present employment and, therefore, the pensioner is to be treated, by virtue of the deeming provision in question, in present employment for the purpose of section 16(i) of the Act". The learned judge also observed that (at page 10) : "where two i ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t ; (iv) where the assessee is not in receipt of a conveyance allowance, whether as such or as part of his salary, in respect of expenditure on travelling for the purposes of his employment, a sum calculated in respect of each calendar month or part thereof comprised in the period of his employment during the previous year, on the basis provided hereunder, namely:- Rs. (a) where the assessee owns a motor car which is used for the purposes of his employment 200 (b) where the assessee owns a motor cycle, scooter or other moped which is used for the purposes of his employment 75 (c) in any other case 50 ; (v) any amount actually expended by the assessee, not being an amount expended on the purchase of books or other publications, o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... hat would mean that, towards the expenditure or in lieu of the expenditure incidental to the employment, deduction has to be granted. Even though the word "expenditure" is used in that phrase, we cannot construe the section so as to mean that the deduction under that head was allowable only if the actual expenditure was incurred because that would amount to granting a back door entry to the basis which was given up by the Legislature while amending section 16. It appears that the Legislature assumed, and rightly so, that no matter whether a person is in actual employment or he is a pensioner, he would be required to incur certain expenditure in order to get his salary or pension, and, proceeding on that assumption, it has provided for a ded ..... X X X X Extracts X X X X X X X X Extracts X X X X
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