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TMI Blog1984 (8) TMI 96X X X X Extracts X X X X X X X X Extracts X X X X ..... 0 only and disallowing Rs. 360 paid as medical allowance. It is opposed by the Department. 2. The assessee is paid an amount of Rs. 225 per month as local outdoor duty allowance as reimbursement of expenditure incurred exclusively on the official local outdoor journeys performed by him every month. He was also paid an amount of Rs. 360 annually as medical allowance without actual expenditure. S ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of the medical allowance was not pressed on behalf of the assessee. Reliance was placed on behalf of the assessee on a Notification of the CBDT dt. 27th Jan., 1978 in support of his claim filed. A dispute was raised by the departmental representative that the local outdoor duty allowance paid to the assessee was in the nature of conveyance allowance and as such the standard deduction was to be res ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... is actually a reimbursement of expenses so as to assure a higher tax benefit. If it is merely a reimbursement of actual expenses incurred in the performance of his duties, the standard deduction would not be restricted to Rs. 1,000 for this reason and the employee will be entitled to the deduction as prescribed in s. 16(i) of the IT Act, 1961." The circular relating to local outdoor duty allow ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s incurred by the assessee. The AAC has also held that the expenditure were actually incurred. He has made categorical observation that the assessee had also produced evidence to show that the expenses were actually incurred, that is why he deleted the addition of Rs. 700 made out of Rs. 2,700 received by the assessee as the local outdoor duty allowance. In such circumstances, the AAC was not just ..... X X X X Extracts X X X X X X X X Extracts X X X X
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