Shri R.K.Sharma, Aligarh V. ACIT, Aligarh

ITA 135/AGR/2009

• Counselvise Citation: [2010] 136 COUNSELVISE.COM (IT) 6689 (ITAT-AGRA)
• Duration Of Justice: 1 year(s) 3 month(s) 17 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 23-07-2010
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: DB
• Next Hearing Date: 22-07-2010
• Assessment Year: 2005-2006
• Appeal Filed On: 06-04-2009
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Section: 10(14)

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL AGRA BENCH, AGRA BEFORE SHRI R.K. GUPTA, JUDICIAL MEMBER AND SHRI P.K. BANSAL, ACCOUNTANT MEMBER ITA NOS.134 & 135/AGR/2009 ASST. YEARS: 2004-05 & 2005-06 SHRI R.K. SHARMA, VS. THE A.C.I.T., CIRCLE-1 , G-41, GYAN SAROVAR COLONY, ALIGARH. ALIGARH. (PAN : AEOPS 7939 G). (APPELLANT) (RESPONDENT) APPELLANT BY : SHRI RAJENDRA SHARMA, ADVOCATE RESPONDENT BY : SHRI VINOD KUMAR, JR. D.R. ORDER PER P.K. BANSAL, A.M.: THESE APPEAL HAVE BEEN FILED AGAINST THE SEPARATE O RDERS OF THE CIT(A) DATED 02.01.2009 AND 19.01.2009 RESPECTIVELY SINCE THE ISSUE INVOLV ED IN THESE APPEALS ARE COMMON, THEREFORE, BOTH THESE APPEALS ARE DECIDED BY THIS COMMON ORDER . 2. AT THE TIME OF HEARING, LD. A.R. CONTENDED THAT THE ISSUE IS DULY COVERED BY THE DECISION OF THIS BENCH. THIS BENCH WAS CONSTANTLY DISALLOWI NG ONLY 20% OF THE FIXED CONVEYANCE ALLOWANCE AND ADDITIONAL CONVEYANCE ALLOWANCE RECEI VED BY THE DEVELOPMENT OFFICERS. IN THIS REGARD, OUR ATTENTION WAS DRAWN TOWARDS THE DECISIO N OF THIS TRIBUNALS IN ASSESSEES OWN CASE IN ITA NO.213/AGR/2006 AND ALSO IN THE CASE OF SHRI MA HENDRA KUMAR AGARWAL IN ITA NO.208/AGR/2006 AND CONTENDED THAT THE DISALLOWANCE SHOULD BE RESTRICTED TO ONLY 20%. 2 3. LD. D.R., ON THE OTHER HAND, RELIED ON THE ORDER S OF THE AUTHORITIES BELOW. 4. WE HAVE HEARD THE RIVAL SUBMISSIONS AND PERUSED THE MATERIAL ON RECORD. WE NOTED THAT THE ASSESSEE IS AN EMPLOYEE WORKING AS DEVELOPMENT OFFICER IN LIFE INSURANCE CORPORATION OF INDIA. THE ASSESSEE CLAIMED CONVEYANCE ALLOWANCE A ND ADDITIONAL CONVEYANCE ALLOWANCE OF RS.24,120/- AND RS.5,18,593/- RESPECTIVELY FOR A.Y. 2004-05 AND RS.24,120/- AND RS.3,89,223/- RESPECTIVELY FOR A.Y. 2005-06 AS EXEMPT UNDER SECTI ON 10(14) OF THE INCOME-TAX ACT, 1961 (THE ACT HEREINAFTER). THE A.O. DID NOT AGREE WITH THE ASSESSEE AND TREATED WHOLE OF THE AMOUNT TO BE THE INCOME OF THE ASSESSEE IN EACH OF THE A.Y. THE ASSESSEE WENT IN APPEAL BEFORE THE CIT(A) AND THE CIT(A) CONFIRMED THE ORDER OF THE A.O. ON T HIS ISSUE. WE NOTED THAT THE ISSUE INVOLVED IS DULY COVERED BY THE DECISION OF THIS TRIBUNAL IN ASSESSEES OWN CASE IN ITA NO.213/AGR/2006 IN WHICH THE TRIBUNAL VIDE ORDER DATED 28.08.2007 H AS HELD AS UNDER :- WE HAVE HEARD THE RIVAL SUBMISSIONS AND PERUSED TH E MATERIAL AVAILABLE ON RECORD AND TAKEN INTO CONSIDERATIONS THE JUDGEME NT RELIED UPON BEFORE THE BENCH. ON A CAREFUL CONSIDERATION OF THE SAME, WE ARE OF THE OPINION THAT IN THE PECULIAR FACTS OF THE CASE, THE LD. CIT(A) WAS NOT JUSTIFIED IN REJECTING OUT RIGHTLY THE PRAYER OF THE ASSESSEE IN REGARD TO TAKING INTO CONSIDERATION THE PAST HISTORY. WE ARE OF THE VIEW IN THE PECULIAR FACTS AND CIRCUM STANCES OF THE CASE IN TERMS OF THE JUDGEMENT OF M.P. HIGH COURT IN THE CASE OF A.K . GHOSH (SUPRA), THAT IT CANNOT BE DENIED THAT EXPENDITURE HAS BEEN INCURRED BY THE ASSESSEE IN DISCHARGE OF HIS DUTIES AND OBLIGATIONS. THE EXPENDITURE FOR WANT OF VOUCHERS HAS TO BE ESTIMATED. ACCORDINGLY, AFTER HEARING THE RIVAL SU BMISSIONS AND PERUSING THE MATERIAL AVAILABLE ON RECORD, WE HOLD THAT THE ASSE SSING OFFICER SHALL ALLOW FIXED CONVEYANCE ALLOWANCE OF RS.24,126/- IN TOTO AND OUT OF ADDITIONAL CONVEYANCE ALLOWANCE OF RS.3,54,800/-, A DISALLOWANCE OF 20% S HALL MEET THE ENDS OF JUSTICE AS THE SAME IS CONSIDERED REASONABLE. THE SAID ORD ER WAS PRONOUNCED AFTER HEARING BOTH THE PARTIES IN THE PRESENT CASE IN THE OPEN COURT ON 26.07.2007. THE GROUNDS RAISED BY ASSESSEE, AS SUCH, ARE PARTLY ALL OWED. 3 5. IN VIEW OF THE DECISION OF THE CO-ORDINATE BENCH OF THE TRIBUNAL, WE DIRECT THE A.O. TO ALLOW EXEMPTION TO THE ASSESSEE UNDER SECTION 10(14 ) AS PER THE DIRECTIONS CONTAINED IN THE AFORESAID ORDER OF THIS TRIBUNAL. 6. IN THE RESULT, BOTH THE APPEALS FILED BY THE ASS ESSEE ARE ALLOWED. (ORDER PRONOUNCED IN THE OPEN COURT ON 23.07.2010). SD/- SD/- (R.K. GUPTA) (P.K. BANSAL) JUDICIAL MEMBER ACCOUNTANT MEMBER PLACE: AGRA DATE: 23 RD JULY, 2010. PBN/* COPY OF THE ORDER FORWARDED TO: 1. APPELLANT 2. RESPONDENT BY ORDER 3. CIT CONCERNED 4. CIT (APPEALS) CONCERNED 5. DR, ITAT, AGRA BENCH, AGRA 6. GUARD FILE ASSIST ANT REGISTRAR INCOME-TAX APPELLATE TRIBUNAL, AGRA TRUE COPY