Shri Satyanarayan Patel, Indore V. The ITO Wd-2(3), Indore

ITA 225/IND/2011

• Counselvise Citation: [2011] 140 COUNSELVISE.COM (IT) 53985 (ITAT-INDORE)
• Duration Of Justice: 1 month(s) 19 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 27-10-2011
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: SMC
• Assessment Year: 2002-2003
• Appeal Filed On: 07-09-2011
• Result in Favour of: Assessee
• Court: TRIBUNAL

Judgement Text

1 IN THE INCOME TAX APPELLATE TRIBUNAL, INDORE SMC BENCH, INDORE BEFORE SHRI R.C. SHARMA, ACCOUNTANT MEMBER ITA NO.225/IND/2011 A.Y. 2002-03 SATYANARAYAN PATEL, INDORE PAN ACHPP 2408 C . APPELLANT VS. ITO-2(3), INDORE . RESPONDENT APPELLANT BY : WRITTEN SUBMISSION FILED BY SHRI K.C.AGRAWAL,CA RESPONDENT BY : SHRI ARUN DEWAN DATE OF HEARING : 27.10.2011 DATE OF PRONOUNCEMENT : 27.10.2011 ORDER THIS APPEAL IS FILED BY THE ASSESSEE CHALLENGING T HE ORDER OF THE LEARNED COMMISSIONER OF INCOME TAX (APPEALS) -II, INDORE, DATED 29.7.2011 FOR THE AY 2002-03 ON THE GROUND TH AT THE LD. CIT(A) ERRED IN MAINTAINING THE TREATMENT OF ALLOWA NCES RECEIVED BY MLA AND EXPENDED FULLY, AS INCOME THE A PPELLANT TO THE EXTENT OF RS.1,86,000/-. 2. THE ASSESSEE HAS FILED WRITTEN SUBMISSION WHICH IS PLACED ON RECORD. AFTER GOING THROUGH THE WRITTEN SUBMISSI ON AND 2 CONTENTION OF THE LD. SR. DR, I FOUND THAT THE ISSU E IS SQUARELY COVERED BY THE ORDER OF TRIBUNAL IN CASE OF JASWANT SINGH VS. ITO (2005) 96 TTJ (IND) 660 WHEREIN FOLLOWING WAS O BSERVATION OF BENCH: INCOME FROM OTHER SOURCES-DEDUCTION U/S 57(III)-TRAVELLING, CONVEYANCE AND TELEPHONE EXPENSES INCURRED BY MLA-SALARY AND ALLOWANCES OF AN MLA ARE ASSESSABLE UNDER THE HEAD INCOME FROM OTHER SOURCES- ASSESSEE, AN MLA OF MADHYA PRADESH LEGISLATIVE ASSEMBLY, WAS ENTITLED FOR DEDUCTION OF TRAVELLING, CONVEYANCE AND TELEPHONE EXPENSES FROM HIS SALARY AND ALLOWANCES TO THE EXTENT OF AMOUNT SPECIFIED IN THE CERTIFICATE ISSUED BY DY. SECRETARY, M.P. LEGISLATIVE ASSEMBLY, AND NOT THE ENTIRE AMOUNT. CONCLUSION : ASSESSEE, AN MLA OF MADHYA PRADESH LEGISLATIVE ASSEMBLY, WAS ENTITLED FOR DEDUCTION OF TRAVELLING, CONVEYANCE AND TELEPHONE EXPENSES FROM HIS SALARY AND ALLOWANCE TO THE EXTENT OF AMOUNT SPECIFIED IN THE CERTIFICATE, ISSUED BY DY. SECRETARY, M.P. LEGISLATIVE ASSEMBLY, AND NOT THE ENTIRE AMOUNT. 3. THE FACTS OF THE INSTANT CASE ARE EXACTLY SIMILA R TO THE FACTS DISCUSSED BY TRIBUNAL IN ITS ORDER (SUPRA). T HE ASSESSEE IS AN MLA OF M.P. LEGISLATIVE ASSEMBLY, WHO WAS IN REC EIPT OF SALARY AND VARIOUS ALLOWANCES TO BE ASSESSED IN HIS HANDS UNDER THE HEAD INCOME FROM OTHER SOURCES U/S 56. THE AMOUNT SO RECEIVED HAD BEEN SPENT BY HIM WHILE PERF ORMING 3 HIS DUTIES AS MLA. I HAD ALSO VERIFIED THE BANK STA TEMENTS PLACED ON RECORD AND FOUND THAT ASSESSEE HAD INCURR ED THE ALLOWANCES SO RECEIVED BY HIM. IN VIEW OF THE DECIS ION OF COORDINATE BENCH, THE ASSESSEE IS ENTITLED FOR DEDU CTION OF THE AMOUNT SPENT BY HIM, IN TERMS OF CERTIFICATE DATED 10.8.2006 PLACED ON RECORD. KEEPING IN VIEW THE ASPECT OF VER IFIABILITY OF EXPENSES IN TERMS OF VOUCHERS, I DIRECT THE AO TO D ISALLOW 10% OF SUCH EXPENSES. RESPECTFULLY FOLLOWING THE DECISI ON OF COORDINATE BENCH (SUPRA), I DIRECT THE ASSESSING OF FICER TO ALLOW THE CLAIM OF 90% OF DEDUCTION OF RS.1,86,000/- U/S 57(III) OF THE I.T. ACT. I DIRECT ACCORDINGLY. 3. IN THE RESULT, THE APPEAL OF THE ASSESSEE IS ALL OWED IN TERMS INDICATED HEREINABOVE. SD/- (R.C. SHARMA) ACCOUNTANT MEMBER DATED: 27.10.2011 COPY TO: APPELLANT/RESPONDENT/CIT/CIT(A)/DR !VYAS!