Sh. Uma Kant Shukla, Kannauj V. D.C.I.T., Circle-2(1), Farrukhabad

ITA 439/AGR/2012

• Counselvise Citation: 43920314 RSA 2012
• Duration Of Justice: 2 year(s) 8 month(s) 28 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 24-06-2015
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: DB
• Next Hearing Date: 17-12-2012
• Assessment Year: 2006-2007
• Appeal Filed On: 26-09-2012
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: AMIT SHUK LA
• Assessee Lawyers: ANURAG SINHA
• Section: 143(3); 10(14)

Judgement Text

I.T.A. NO.439/AGRA/2012 ASSESSMENT YEAR 2006-07 PAGE 1 OF 3 IN THE INCOME TAX APPELLATE TRIBUNAL AGRA BENCH, SMC, AGRA [CORAM: PRAMOD KUMAR AM] ITA NO.439/AGRA/2012 ASSESSMENT YEAR: 2006-07 UMA KANT SHUKLA (DO), .................... ...APPELLANT LIC OF INDIA, KANNAUJ [PAN: ADBPS 5844 C] VS. DY. COMMISSIONER OF INCOME TAX, ...... RESPONDENT CIRCLE 2(1), FARRUKHABAD. APPEARANCES BY: ANURAG SINHA, FOR THE APPELLANT AMIT SHUKLA, FOR THE RESPONDENT DATE OF CONCLUDING THE HEARING : 18 TH JUNE, 2015 DATE OF PRONOUNCING THE ORDER : 24 TH JUNE, 2015 O R D E R 1. BY WAY OF THIS APPEAL, THE ASSESSEE APPELLANT HA S CHALLENGED CORRECTNESS OF THE CIT(A)S ORDER DATED 1 ST JUNE, 2012, IN THE MATTER OF ASSESSMENT UNDER SECT ION 143(3) R.W.S. 147 OF THE INCOME TAX ACT, 1961 (HEREINAFTER REFERRED TO AS THE ACT) , FOR THE ASSESSMENT YEAR 2006-07, ON THE FOLLOWING GROUNDS : - 1. BECAUSE THE ASSESSMENT IS BAD IN LAW AND ON THE FACTS OF THE CASE. 2. BECAUSE THE AUTHORITIES BELOW HAVE ERRED IN DISA LLOWING THE ENTIRE CLAIM FOR EXEMPTION OF FCA/ACA UNDER SECTION 10(14) OF THE ACT. 2. THE ASSESSEE IS AN EMPLOYEE WORKING AS DEVELOPME NT OFFICER IN LIFE INSURANCE CORPORATION OF INDIA. THE ASSESSEE CLAIMED CONVEYA NCE ALLOWANCE AMOUNTING TO RS.2,32,244/- (RS.36,600/- FIXED CONVEYANCE ALLOWAN CE + RS.1,95,644/- ADDITIONAL CONVEYANCE ALLOWANCE) AS EXEMPT UNDER SECTION 10(14 ) OF THE ACT. THE A.O. DID NOT AGREE WITH THE ASSESSEE AND DISALLOWED A SUM OF RS. 1,95,644/- TOWARDS ADDITIONAL CONVEYANCE ALLOWANCE. THE ASSESSEE WENT IN APPEAL BEFORE THE CITA AND THE CIT(A) I.T.A. NO.439/AGRA/2012 ASSESSMENT YEAR 2006-07 PAGE 2 OF 3 PARTLY ALLOWED HE APPEAL OF THE ASSESSEE, DIRECTING THE A.O. TO RESTRICT THE ALLOWANCE TO ACTUAL CONVEYANCE ALLOWANCE RECEIVED PLUS 35% OF TH E ADDITIONAL CONVEYANCE ALLOWANCE. 3. AT THE TIME OF HEARING BOTH THE LD. REPRESENTATI VES AGREED THAT IDENTICAL ISSUE IS DECIDED BY ITAT, AGRA BENCH IN ITA NO.213/AGR/2006 IN THE CASE OF R.K. SHARMA VS. ACIT, ALIGARH IN WHICH THE TRIBUNAL VIDE ORDER DATE D 28.08.2007 HAS HELD AS UNDER : WE HAVE HEARD THE RIVAL SUBMISSIONS AND PERUSED TH E MATERIAL AVAILABLE ON RECORD AND TAKEN INTO CONSIDERATIONS T HE JUDGEMENT 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 TH E ASSESSEE IN REGARD TO TAKING INTO CONSIDERATION THE PAST HISTORY. WE ARE OF THE VIEW IN THE PECULIAR FACTS AND CIRCUMSTANCES OF THE CASE IN TER MS 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 VOUCH ERS HAS TO BE ESTIMATED. ACCORDINGLY, AFTER HEARING THE RIVAL SUBMISSIONS AN D PERUSING THE MATERIAL AVAILABLE ON RECORD, WE HOLD THAT THE ASSESSING OFF ICER SHALL ALLOW FIXED CONVEYANCE ALLOWANCE OF RS.24,126/- IN TOTO AND OUT OF ADDITIONAL CONVEYANCE ALLOWANCE OF RS.3,54,800/-, A DISALLOWAN CE OF 20% SHALL MEET THE ENDS OF JUSTICE AS THE SAME IS CONSIDERED REASO NABLE. THE SAID ORDER WAS PRONOUNCED AFTER HEARING BOTH THE PARTIES IN THE PR ESENT CASE IN THE OPEN COURT ON 26.07.2007. THE GROUNDS RAISED BY ASSESSE E, AS SUCH, ARE PARTLY ALLOWED. 4. 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 SECTI ON 10(14) AS PER THE DIRECTIONS CONTAINED IN THE AFORESAID ORDER OF THIS TRIBUNAL. 5. IN THE RESULT, THE APPEAL IS ALLOWED. PRONOUNCED IN THE OPEN COURT TODAY ON 24 TH JUNE, 2015. SD/- PRAMOD KUMAR (ACCOUNTAN T MEMBER) AGRA, THE 24 TH JUNE, 2015 PBN/* I.T.A. NO.439/AGRA/2012 ASSESSMENT YEAR 2006-07 PAGE 3 OF 3 COPIES TO: (1) THE APPELLANT (2) THE RESPONDENT (3) CIT(A) CONCERNED (4) CIT CONCERNED (5) DEPARTMENTAL REPRESENTATIVE (6) GUARD FILE BY ORDER ASSISTANT REGISTRAR INCOME TAX APPELLATE TRIBUNAL AGRA BENCH, AGRA