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TMI Blog1980 (7) TMI 84X X X X Extracts X X X X X X X X Extracts X X X X ..... r section 16(v) or under section 10(14) of the Act for the assessment year 1969-70 ? " The facts leading to this reference are as follows: The assessment years under consideration are the assessment years 1968-69 and 1969-70. The assessee is an individual and at the relevant time he was an employee of Calico Mills and was provided with a car by his employer for the two years under reference. During the course of the assessment for the assessment year 1968-69, apart from the provision of car by his employer, no allowance in the nature of conveyance allowance was provided by the employer, whereas, for the assessment year 1969-70, besides providing him with a car for his use, the employer-company also paid to the assessee an amount of co ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ecessarily and exclusively in the performance of his duties expressly bars a deduction of expenditure on maintenance of conveyance. The assessee preferred an appeal against the rejection of the claim regarding maintenance of the car to the AAC and the AAC accepted the contention of the assessee and allowed the claim following his order for the earlier assessment years 1962-63 to 1967-68. On appeal by the revenue to the Tribunal, the assessee relied on the order passed for assessment years 1962-63 to 1967-68 in the case of the Tribunal in another case relating to another assessee. for the assessment year 1962-63 involving a similar claim. Ultimately, the Tribunal found that the question of expenses having been incurred by the assessee, by ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... in the case of an assessee who is in receipt of a salary from the Government, a sum equal to one-fifth of his salary (exclusive of any allowance, benefit or other perquisite) or five thousand rupees, whichever is less; and (b) in the case of any other assessee who is in receipt of such entertainment allowance and has been continuously in receipt of such entertainment allowance regularly from his present employer from a date before the 1st day of April, 1955, the amount of such entertainment allowance regularly received by the assessee from his present employer in any previous year ending before the 1St day of April, 1955, or a sum equal to one-fifth of his salary (exclusive of any allowance, benefit or other perquisite) or seven thousan ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... under ". The rest of cl. (iv) is not material for the purpose of this judgment. It is thus clear that in order that the case for deduction for maintenance of the car may fall under cl. (iv) as it stood at the relevant time, one of the requirements was that the car in question should be owned by the assessee who was being assessed under the head " Salaries ". The ITO and the department were, therefore, right when they held that the case for deduction of maintenance allowance claimed by the assessee in the instant case would not fall under the specific provisions of cl. (iv) of s. 16 for either of the two assessment years. However, the question is whether the case would fall under s. 16(v) of the Act. Section 16 itself provides for dedu ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e for maintenance of conveyance but there are other conditions laid down in cl. (iv) before the expenditure incurred by an assessee for maintenance of a conveyance can be available for deduction under cl. (iv). By using a sort of short-hand, what the Legislature has taken out of the operation of cl. (v) are the specific types of expenditure covered by cls. (i), (ii) and (iv) of s. 16. It is, therefore, clear that if the claim for deduction in respect of maintenance of a conveyance does not fall within the terms of cl. (iv), it may not be available for deduction as expenditure for the maintenance of a conveyance falling within s. 16(iv). However, if that amount is actually expended by the assessee and he was, by the conditions of his service ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... as actually spent by the assessee and that by the conditions of his service, the assessee was required to spend these amounts out of his remuneration wholly, necessarily and exclusively in the performance of his duties. In view of this finding of fact, it is clear that in each of these two years under consideration, the amount claimed for the respective year by way of deduction for maintenance of conveyance was rightly allowable because all the conditions of cl. (v) of s. 16 were satisfied in respect of each of these two assessment years. Since this is the conclusion that we have arrived at, it is not necessary for us to go into the provisions of s. 10(14) so far as the assessment year 1969-70 is concerned because, as pointed out earlier ..... X X X X Extracts X X X X X X X X Extracts X X X X
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