9911796707
TMI Blog1992 (11) TMI 50X X X X Extracts X X X X X X X X Extracts X X X X ..... are brief and without any controversy. In the return for the assessment year 1978-79, the assessee, in addition to his salary, also showed a sum of Rs. 23,040 received by him from the Fertilizer Corporation of India Limited, Sindri ( hereinafter referred to as " the F. C. I. " ), as living allowance at the rate of Rs. 120 per day. In respect of this amount he claimed exemption in terms of section 10(14) of the Act. The assessee's claim in this regard was turned down by the Income-tax Officer. The assessment order was confirmed in appeal before the appellate authority. The Income-tax Appellate Tribunal, however, upheld the assessee's claim for exemption, set aside the orders of the Income-tax Officer and the appellate authority and directed ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... learned counsel for the Revenue, submitted that the so-called "subsistence allowance" being directly linked with the cost of living in India was clearly in the nature of dearness allowance and hence was a perquisite within the meaning of section 17(2) of the Act which was specifically excluded from exemption in terms of section 10(14). Mr. Vishwa Mohan, learned counsel for the assessee, on the other hand, argued that it was in the nature of a special allowance for working in India away from his home country and was accordingly fully covered by section 10(14) of the Act. I do not find it necessary to decide whether or not the amount paid to the assessee was in the nature of dearness allowance or was otherwise in the nature of a perquisite ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... does not bear the character of the allowance for meeting expenses but for performing the duties of the office or employment, and would be taxable.This would be so even if the employer has disabled himself from demanding refund of the amount not expended for meeting the expenses incurred in the performance of the duties of an office or employment of profit, and the surplus remaining in the hands of the grantee acquires for the purpose of the Income-tax Act the character of additional remuneration. " What the Supreme Court had laid down on a construction of the exemption provision in the 1922 Act has been explicitly incorporated in the provision contained in section 10(14) of the Act (as it stood at the material time) wherein it is stated ..... X X X X Extracts X X X X X X X X Extracts X X X X
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