Shri Girirajsinh M. Jhala, RAJKOT-GUJARAT V. The Income Tax Officer, Ward-4(2), RAJKOT-GUJARAT

ITA 526/RJT/2013

• Counselvise Citation: [2018] 121 COUNSELVISE.COM (IT) 9926 (ITAT-RAJKOT)
• Duration Of Justice: 4 year(s) 9 month(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 26-09-2018
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: DB
• Next Hearing Date: 10-01-2017
• Assessment Year: 2008-2009
• Appeal Filed On: 26-12-2013
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Assessee Lawyers: MJ RANPURA
• Keywords: Salary income
• Section: 10(14)

Judgement Text

, IN THE INCOME TAX APPELLATE TRIBUNAL, RAJKOT [CONDUCTED THROUGH E COURT AT AHMEDABAD] BEFORE SHRI RAJPAL YADAV, JUDICIAL MEMBER AND SHRI WASEEM AHMED, ACCOUNTANT MEMBER ./ ITA NO. 526/RJT/2013 / ASSESSMENT YEARS: 2008-09 LATE SHRI GIRIRAJSINH M. JHALA THROUGH HIS LEGAL HEIR SMT.DIVYABA GIRAJSINGH JHALA LIC OF INDIA, CBO-3 TAGORE MARG, RAJKOT. VS ITO, WARD-4(2) RAJKOT. ASSESSEE BY : SHRI M.J. RANPURA, AR REVENUE BY : SHRI PRAVEEN VERMA, SR.DR / DATE OF HEARING : 30/07/2018 /DATE OF PRONOUNCEMENT : 26/09/2018 O R D E R PER RAJPAL YADAV, JUDICIAL MEMBER : PRESENT APPEAL IS DIRECTED AT THE INSTANCE OF THE ASSESSEE AGAINST O RDER LD.CIT(A)-III, RAJKOT DATED 21.10.2013 PASSED FOR THE ASSESSMENT Y EAR 2008-09. 2. THE ISSUE REGARDING DISALLOWANCE OF CONVEYANCE E XPENSES HAS BEEN RAISED BY WAY OF FOLLOWING GROUNDS OF APPEAL: 1.0 THE GROUNDS OF APPEAL MENTIONED HEREUNDER ARE WITHOUT PREJUDICE TO ONE ANOTHER. 2.0 THE LEARNED COMMISSIONER OF INCOME TAX (AP PEALS)-III, RAJKOT (HEREINAFTER REFERRED TO AS THE 'CIT(A)') ERRED ON F ACTS AS ALSO IN LAW IN CONFIRMING DISALLOWANCE OF FIXED CONVEYANCE ALLOWAN CE OF RS.28,533/- CLAIMED AS AN EXPENSE. THE DISALLOWANCE MAY KINDLY BE DELETED. ITA NO.526/RJT/2013 - 2 - 3.0 THE LEARNED CIT(A) ERRED ON FACTS AS ALSO I N LAW IN CONFIRMING DISALLOWANCE OF ADDITIONAL CONVEYANCE ALLOWANCE OF RS.2,24,256/- CLAIMED AS A EXPENSE FROM INCENTIVE BONUS. THE DISA LLOWANCE MAY KINDLY BE DELETED. 4.0 YOUR HONOR'S APPELLANT CRAVES LEAVE TO ADD , AMEND, ALTER OR WITHDRAW ANY OR MORE GROUNDS OF APPEAL ON OR BEFORE THE HEARING OF APPEAL. 3. BRIEF FACTS EMERGING FROM ORDERS OF THE REVENUE AUTHORITIES ARE THAT THE ASSESSEE, LATE SHRI GIRIRAJSINH M. JHALA WA S A DEVELOPMENT OFFICER WITH LIC OF INDIA. HE HAS FILED RETURN OF INCOME FOR THE YEAR UNDER CONSIDERATION ON 18.3.2009 VIDE WHICH HE DECL ARED TOTAL INCOME OF RS.7,23,163/-. ON SCRUTINY OF THE RECORDS, IT WAS NOTICED BY THE AO THAT THE ASSESSEE HAS CLAIMED DEDUCTION OF RS.2,65,977/- OUT OF INCENTIVE BONUS AND FIXED CONVEYANCE ALLOWANCE RECEIVED ON AC COUNT OF EXPENSES OUT OF THESE RECEIPTS. THE AO OBSERVED THAT DEDUCT ION CLAIMED BY THE ASSESSEE WAS NOT ALLOWABLE UNDER SECTION 10(14) AND SECTION 16 OF THE ACT, AS THE INCOME EARNED BY THE ASSESSEE FALLS UND ER THE HEAD INCOME FROM SALARY. HE REOPENED THE ASSESSMENT AND ISSUE D NOTICES TO THE ASSESSEE ASKING HIM TO FURNISH DETAILS. AFTER VERI FYING THE DETAILS, THE LD.AO FOUND THAT THE ASSESSEE HAS CLAIMED CONVEYANC E EXPENSES ON THREE COUNTS VIZ. RS.1,63,646/- BEING 30% OF INCENT IVE BONUS IN ADDITION TO RS.60,609/- CLAIMED AS CONVEYANCE EXPENSES. BESI DES THAT THE ASSESSEE HAS CLAIMED DEDUCTION OF RS.40,762/- BEING FIXED CO NVEYANCE ALLOWANCE RECEIVED. THEREFORE, IN ALL, ASSESSEE HAS CLAIMED RS. 2,65,018/- TOWARDS CONVEYANCE EXPENSES. THE ASSESSEE FURNISHED DETAIL S AND CONTENDED THAT THE ABOVE EXPENSES WERE INCURRED FOR EARNING T HE INCENTIVE BONUS. THE AO WAS NOT SATISFIED WITH THE DETAILS SUBMITTED BY THE ASSESSEE AS HE FOUND THE SAME TO BE SELF-MADE WITHOUT ANY SUPPO RTING EVIDENCE OR ITA NO.526/RJT/2013 - 3 - NOT VERIFIABLE. THE AO, THEREFORE, DENIED DEDUCTIO N OF RS.2,24,256/- (RS.1,63,646/- PLUS RS.60,609/-) HOWEVER ALLOWED 30 % OF FIXED EXPENSES OF RS.40,762/- AS CONVEYANCE EXPENSES AND ADDED BAC K THE BALANCE AMOUNT OF RS.28,533/- TO THE TOTAL INCOME OF THE AS SESSEE. AGGRIEVED ASSESSEE WENT IN APPEAL BEFORE THE LD.FIRST APPELLA TE AUTHORITY, WHO CONFIRMED THE ADDITION. ASSESSEE IS NOW BEFORE THE TRIBUNAL. 4. BEFORE US, THE LD.COUNSEL FOR THE ASSESSEE HAS S UBMITTED THAT REQUISITE VOUCHERS SUPPORTING THE CONVEYANCES EXPEN SES HAVE BEEN FURNISHED TO THE AO DURING THE ASSESSMENT PROCEEDIN GS, AND THEREFORE, THE ASSESSEE IS ENTITLED FOR ENTIRE EXPENDITURE. HE FURTHER SUBMITTED THAT IN ORDER TO EARN INCENTIVE BONUS OF RS.6,06,097/- T HE ASSESSEE HAS TO INCUR A LOT OF CONVEYANCE AND TRAVELLING EXPENSES, AS THE FIELD WORK OF THE ASSESSEE REQUIRED A LOT OF TRAVELLING FOR CANVA SSING THE CUSTOMERS FOR THE LICS BUSINESS. LETTER OF THE LIC DATED 28.5. 2008 (COPY OF WHICH IS PLACED ON RECORD) INDICATE THAT INCENTIVE BONUS OF RS.6,06,097/- INCLUDED CONVEYANCE EXPENSES OF RS.60609/-, WHICH MEANS, THE SAME IS IN THE NATURE OF REIMBURSEMENT, AND THEREFORE, THE SAME IS TO BE EXCLUDED FROM THE TOTAL INCOME. THE LD.DR, ON THE OTHER HAND REL IED UPON THE ORDERS OF THE REVENUE AUTHORITIES. 5. WE HAVE CONSIDERED RIVAL SUBMISSIONS AND GONE TH ROUGH THE RECORD CAREFULLY. THE COUNSEL FOR THE ASSESSEE HAS PRODUCED A LETTER OF LIC DATED 28.5.2008 WHEREIN AT SR.NO.6 AGAINST COLU MN INCENTIVE BONUS RS.6,06,097/- HAS BEEN MENTIONED. AT THIS STAGE, B EFORE ADVERTING TO THE SPECIFIC CLAIM MADE BY THE ASSESSEE, WE WOULD LIKE TO TAKE NOTE OF LICS SCHEME FORMULATED FOR CONSIDERING CERTAIN DEVELOPME NT OFFICERS EMPLOYED WITH IT AS SENIOR BUSINESS ASSOCIATES (SB AS FOR SHORT). THE ITA NO.526/RJT/2013 - 4 - SBAS WERE REQUIRED TO MAINTAIN THE BUSINESS AT THEI R PREMISES AND LIC WOULD REIMBURSE EXPENDITURE. WE HAVE TAKEN COGNIZA NCE OF SUCH SCHEME IN THE CASE OF NITINBHAI T. BHUPTANI VS. ACI T, CIR.4, RAJKOT IN ITA NOS.13/RJT/2016 AND OTHERS. SHRI BHUPTANI WAS DEVELOPMENT OFFICER. WE HAVE TAKEN COGNIZANCE OF THESE APPEALS , AND THEREAFTER DECIDED IDENTICAL ISSUES. THE SCHEME REPRODUCED IN THE TRIBUNALS ORDER DATED 18.4.2018 READS AS UNDER: SIMILARLY DURING THE ACCOUNTING PERIOD THERE WAS S ENIOR BUSINESS ASSOCIATES SCHEMES AS UNDER. ELIGIBILITY CRITERIA: A DEVELOPMENT OFFICER WILL BE CONSIDERED ELIGIBLE T O APPLY AS SENIOR BUSINESS ASSOCIATE IF HE/SHE (I) HAS COMPLETED 5 YEARS SERVICE. (II) HAS WORKED AT A COST RATIO OF 3% OR LESS IN TH E LAST COMPLETED APPRAISAL YEAR. THE COST RATIO SHOULD BE RECKONED AND ROUNDED OFF TO TH E NEAREST FIRST DECIMAL PLACE; FOR EXAMPLE, IF THE COST RATIO WORKS TO 3.04%, IT SHOUL D BE TAKEN AS 3% AND IF IT WORKS TO 3.05%, IT SHOULD BE TAKEN AS 3.1%. (III) IS HAVING HIS/HER OWN OFFICE AND (IV) IS WILLING TO WORK AS A SENIOR BUSINESS ASSOCI ATE. FUNCTIONS: BESIDES PERFORMING HIS/HER BASIC DUTIES AND OBLIGAT IONS AS A DEVELOPMENT OFFICE, SUCH SELECTED SENIOR BUSINESS ASSOCIATES SHALL BE A UTHORIZED TO CARRY OUT MARKET ORIENTED/CUSTOMERS ORIENTED FUNCTIONS THROUGH ONLIN E PORTAL FROM HIS/HER OFFICE. INITIALLY, THE SENIOR BUSINESS ASSOCIATE SHALL BE A UTHORIZED TO: 1.COLLECT RENEWAL PREMIUMS FROM ALL POLICYHOLDERS. 2.COLLECT PROPOSAL DEPOSITS TRANSACTION FROM AGENTS UNDER HIS/HER ORGANIZATION. 3.REGISTER PROPOSAL OF AGENTS WORKING UNDER HIS/HER ORGANIZATION. 4.SUBMIT PROPOSAL OF AGENTS WORKING UNDER HIS/HER O RGANIZATION THROUGH ELECTRONIC MEDIA (E PROPOSAL). THE FOLLOWING ADD ON FUNCTIONS WILL BE ALLOWED TO A SENIOR BUSINESS ASSOCIATES. 1.ISSUE OF POLICY STATUS REPORTS. 2.ISSUE OF REVIVAL /LOAN/SURRENDER VALUE QUOTATIONS . 3.ISSUE OF FORMS. ITA NO.526/RJT/2013 - 5 - 4.ISSUE OF CERTIFICATES TO THE POLICYHOLDERS FOR IN COME TAX PURPOSE. 5.ULIP STATEMENTS. BENEFITS AND ALLOWANCE: FOR THE PURPOSE OF ALLOWING BENEFITS AND ALLOWANCES , SUCH SENIOR BUSINESS ASSOCIATES WOULD BE DIVIDED INTO 3 CATEGORIES AS SHOWN BELOW. CATEGORY PLACE OF POSTING I CITIES OF MUMBAI, KOLKATA, CHENNAI, DELHI & NOIDA, FARIDABAD, GHAZIABAD, GURGAON AND NAVI MUMBAI. II CITIES WITH POPULATION EXCEEDING 12 LAKHS, EXCEPT T HOSE MENTIONED IN (I) ABOVE, ANY CITY IN THE STATE OF GOA AND GANDHI NAGAR. III OTHER PLACES. THE POPULATION FIGURES FOR THE ABOVE PURPOSE SHALL BE AS PER THE LATEST CENSUS REPORT. FURTHER, THE CITIES SHALL ALSO INCLUDE THEIR URBAN AGGLOMERATION. THE CLASSIFICATION OF CITIES FOR THE PURPOSE OF PAYMENT OF BENEFITS SH ALL BE AS SHOWN BELOW. CATEGORY-I CATEGORY-II CATEGORY-III KOLKATA- INCLUDING MUNICIPAL AREAS COMPRISING CITY OF KOLKATA (INCLUDING BEHALA, ALIPUR, COSSIPUR, TOLLYGUNGE), HOWRAH, BARRACKPORE (INCLUDING NORTH BARRACKPORE), GARDEN REACH BARRANAGORE SOUTH SUBURBAN MUNCIPAL AREA DUM DUM (INCLUDING SOUTH DUM DUM), KAMARHATTI, PANIHATI, KNARDA, TITAHGARH, GARULIA, BHATPARA, NAIHATI, BALLY, UTTARPARA, KONNAGAR, RISHRA, CORAMPERE, BALDYABALL, CHAMPDAM, BHADRESHWAR, CHADANNAGAR, HOOGLY, CHINSURA, BUDGE BUDGE, HABRA, BARUIPUR, BARASAT AND ULUBERIA. AGRA, AHMEDABAD, BANGALORE, BHOPAL. COIMBATORE (INCLUDING SULUR), GANDHINAGAR, GOA (ENTIRE STATE),HYDERABAD, INDORE, JAIPUR, KANPUR, KOICHI, LUCKNOW, LUDHIANA, MADURAI ( INCLUDING TIRUNAGAR), NAGPUR, PATNA, PUNE (INCLUDING PIMPRI & CHINCHWAD). SURAT, VADODARA, VARANASI, VISHAKHAPATNAM (INCLUDING GAJUWAKA). ALL OTHER PLACES. CHENNAI MUMBAI -INCLUDING AREAS COMPARISING WITHIN THE LIMITS OF MUMBAI MUNCIPAL ITA NO.526/RJT/2013 - 6 - CORPORATION (GREATER MUMBAI), DOMBIVLLI, KALYAN, THANE, BHAWANDI, UTHASNAGAR BASSEIN MUNCIPALITIES AND NAVI MUMBAI NEW DELHI-FARIDABAD, GHAZIABAD, GURGAON, NOIDA. THE FOLLOWING BENEFITS WILL BE PROVIDED TO SUCH SEN IOR BUSINESS ASSOCIATES FOR MARKETING AND CUSTOMERS RELATED SERVICES: 1. ONE TIME INTEREST FREE ADVANCE FOR MAKING ALTERNATI ONS IN THE OFFICE INFRASTRUCTURE, RENOVATION, PURCHASE OF FURNITURE ETC. AS SHOWN BEL OW: PARTICULARS CATEGORY-I CATEGORY-II CATEGORY-III MAXIMUM AMOUNT OF ADVANCE (RS.) 1,50,000 1,25,000 1,00,000 REPAYMENT TERM 4 YEARS ( 48 INSTALLMENTS) 4 YEARS ( 48 INSTALLMENTS) 4 YEARS ( 48 INSTALLMENTS) INSTALLMENT PER MONTH (RS.) 3125 1 ST - 2565 2 ND - TO 48 TH - 2605 L ST -2240 2 ND - TO 48 TH -2080 2. THEY WILL BE REIMBURSED AN AMOUNT AS SHOWN BELOW, P ER MONTH TOWARDS OFFICE MAINTENANCE SUBJECT TO CERTAIN MINIMUM NUMBER OF RE NEWAL PREMIUM TRANSACTIONS, PROPOSAL DEPOSITS TRANSACTION, REGIST RATION OF PROPOSAL AND SUBMISSION OF E PROPOSALS. PARTICULARS CATEGORY-I CATEGORY-II CATEGORY-ILL MAXIMUM AMOUNT OF REIMBURSEMENT ALLOWED PER MONTH (RS.) 25,000 20,000 15,000 THE AMOUNT AS SHOWN ABOVE WILL BE REIMBURSED SUBJECT TO CERTAIN MINIMUM TRANSACTION IN A MONTH, WHICH WOULD BE AS SHOWN BEL OW: PARTICULARS 1 ST QUARTER (APRIL TO JUNE) 2 ND QUARTER (JULY TO SEPTEMBER) 3 RD QUARTER (OCTOBER TO DECEMBER) 4 TH QUARTER ( JANUARY TO MARCH) RENEWAL PREMIUM 200 P.M. 250 P.M. 350P.M. 400 P.M. ITA NO.526/RJT/2013 - 7 - PROPOSAL DEPOSITS 40 P.M. 60 P.M. 70 P.M. 70 P.M. SUBMISSION/ REGISTRATION OF E PROPOSAL 30 P.M. 60 P.M. 60 P.M. 60 P.M. THE SENIOR BUSINESS ASSOCIATE WHO FULFILLS THE ABOVE BE NCHMARK SHALL BE ALLOWED REIMBURSEMENT TOWARDS OFFICE MAINTENANCE ALONG WITH REIMBURSEMENT TOWARDS VARIOUS TRANSACTIONS FOR THAT MONTH. IN CASE HE DOE S NOT FULFILL THE BENCHMARK. HE SHALL BE ONLY ALLOWED REIMBURSEMENT TOWARDS VARIOUS TRANSACTIONS. HOWEVER AT THE END OF THE QUARTER THE SR. DIVISIONAL MANGER IN-CHA RGE SHALL REVIEW THE TOTAL TRANSACTIONS MADE AND IN CASE THE SENIOR BUSINESS A SSOCIATES HAS FULFILLED THE QUARTERLY TARGET BASED ON THE MONTHLY TARGET OF THE CONCERNED MONTHS. HE/SHE SHALL BE PAID THE REIMBURSEMENT TOWARDS OFFICE MAINTENANCE I NCLUDING THE MONTH/S FOR WHICH HE COULD NOT ACHIEVE THE BENCHMARK. IT MAY BE NOTED THAT THE DEFICIT FOR A PARTICULAR QUARTER SHALL NOT BE CARRIED FORWARD TO THE NEXT QU ARTER. ADDITIONAL REIMBURSEMENT: THE ADDITIONAL REIMBURSEMENT ALLOWED TO SUCH SENIOR BUSINESS ASSOCIATES FOR COLLECTION OF RENEWAL PREMIUM/PROPOSAL DEPOSITS, SU BMISSION AND REGISTRATION OF E PROPOSAL SHALL BE AS SHOWN BELOW: I) A TRANSACTION FEE OF RS. 5/- PER POLICY FOR COLLECTION OF RENEWAL PREMIUM PROPOSAL DEPOSITS. THE TRANSACTION FEE IN CASE OF PROPOSAL DEPOSITS WI LL BE PAID WHEN THE BOC IS ADJUSTED TO NB PREMIUM. II) A TRANSACTION FEE OF RS. 107- PER POLICY FOR CO LLECTION OF PROPOSAL DEPOSITS, SUBMISSION AND REGISTRATION OF E-PROPOSAL. NO ADDITIONAL REIMBURSEMENT WILL ALLOWED TO A SENIO R BUSINESS ASSOCIATE FOR PERFORMING THE ADD-ON FUNCTIONS. IN THE EVENT OF A DEVELOPMENT OFFICER JOINING AS A SENIOR BUSINESS ASSOCIATE IN THE MIDDLE OF THE MONTH, THE REIMBURSEMENT TOWARDS OFFI CE MAINTENANCE SHALL BE ALLOWED FROM THE FIRST OF THE FOLLOWING MONTH. HOWEVER, HE/ SHE SHALL BE ALLOWED REIMBURSEMENT TOWARDS VARIOUS TRANSACTIONS. THE SENIOR BUSINESS ASSOCIATE HAS TO CONTINUE TO MA INTAIN THE COST RATIO AT 3% IN THE SUBSEQUENT APPRAISAL YEARS. HOWEVER, ZONAL MANGER I N-CHARGE CAN WAIVE THE COST RATIO UP TO 1% IN THAT APPRAISAL YEAR IN WHICH THE COST RATIO HAS EXCEEDED BY 3%. SUCH CONCESSION WILL BE ALLOWED ON 2 OCCASION AFTER WHICH NO REIMBURSEMENT SHALL BE ITA NO.526/RJT/2013 - 8 - ALLOWED TOWARDS OFFICE MAINTENANCE. HOWEVER THE SEN IOR BUSINESS ASSOCIATE WILL BE ALLOWED ADDITIONAL REIMBURSEMENT FOR RENEWAL PREMIU M/PROPOSAL DEPOSIT TRANSACTION/SUBMISSION AND REGISTRATION OF E PROPOS AL. THE REIMBURSEMENT TOWARDS OFFICE MAINTENANCE SHALL CONTINUE ONCE THE SENIOR B USINESS ASSOCIATE MAINTAINS THE COST RATIO AT 3% OR BELOW. THUS, THESE RECEIPTS WERE REIMBURSEMENT OF EXPENSES INCURRED FOR ON BEHALF OF L1C FOR FUNCTION WHICH WERE NORMALLY PERFORMED BY LIC. 6. IN THE LIGHT OF THE ABOVE, LET US EXAMINE CLAIM OF THE ASSESSEE. A NOTE APPENDED TO THAT SR.NO.6 STATES THAT THE SAID INCENTIVE BONUS INCLUDES AN AMOUNT OF RS.60,609/- WHICH HAS BEEN IN CURRED BY THE ASSESSEE AS CONVEYANCE EXPENSES. THEREFORE, TO THA T EXTENT CLAIM OF CONVEYANCE EXPENSES CANNOT BE DENIED, AS THE SAME I S IN THE NATURE OF REIMBURSEMENT. 7. COMING TO THE CLAIM OF RS.40,762/- TOWARDS FIXED CONVEYANCE ALLOWANCE IS CONCERNED, THE ASSESSEE HAS PRODUCED C ERTAIN VOUCHERS AND DETAILS BEFORE THE LOWER AUTHORITIES, WHICH THEY DO UBTED. HOWEVER, THE REVENUE AUTHORITIES HAVE NOT DOUBTED INCURRENCE OF SUCH EXPENDITURE IN ENTIRETY, RATHER ESTIMATED THE EXPENDITURE TO BE 30 % OF SUCH CLAIM. WE FURTHER FIND THAT THE HONBLE PUNJAB HIGH COURT IN THE CASE OF CIT VS. BRANCH MANAGER, LIC REPORTED IN 298 ITR 358 (P&H) A ND THE HONBLE RAJASTHAN HIGH COURT IN THE CASE OF LIC VS. UNION O F INDIA, 260 ITR 41 HAS HELD THAT THE DEVELOPMENT OFFICER IN THE LIC WE RE ENTITLED TO CLAIM EXEMPTION UNDER SECTION 10(14) OF THE ACT IN RESPEC T OF CONVEYANCE ALLOWANCE/ ADDITIONAL ALLOWANCE UPON SATISFACTION T HAT SUCH ALLOWANCES HAVE ACTUALLY BEEN SPENT FOR THE PURPOSE FOR WHICH THEY HAVE GIVEN WHOLLY, NECESSARILY AND EXCLUSIVELY FOR THE PURPOSE OF DUTIES. WE ARE NOT CONVINCED WITH THE LOGIC APPLIED BY THE AO IN E STIMATING THE FIXED CONVEYANCE EXPENSES TO BE AT 30%, MORE SO WHEN IT C AN BE JUDGED THE ITA NO.526/RJT/2013 - 9 - FACT THAT THE ASSESSEE IS A DEVELOPMENT OFFICER OF LIC AND HE IS ENGAGED IN FIELD WORK TO CANVAS CUSTOMERS FOR THE BUSINESS OF THE LIC. HE REQUIRED TO TRAVEL EXTENSIVELY FOR OBTAINING BUSINE SS FOR THE LIC, AND THEREFORE FOR EARNING INCENTIVE BONUS OF RS.6,06,09 7/-INCURRENCE OF CONVEYANCE EXPENSES TO THE EXTENT OF RS.40,762/- CA NNOT BE DOUBTED AND HENCE DESERVES TO BE ALLOWED. THEREFORE, WE ALLOW ENTIRE FIXED ALLOWANCE OF RS.40,762/- CLAIMED BY THE ASSESSEE. 8. COMING TO BALANCE CLAIM OF RS.1,63,646/- OUT OF INCENTIVE BONUS OF RS.6,06,097/- IS CONCERNED, THE LD.COUNSEL FOR THE ASSESSEE CONTENDED THAT THIS AMOUNT REPRESENTED EXPENDITURE INCURRED BY THE ASSESSEE IN PERFORMANCE OF HIS DUTIES AS A DEVELOPMENT OFFICER. AS A DEVELOPMENT OFFICER OF LIC, MAIN TASK IS TO DEVELOP BUSINESS FO R THE LIC. FOR THAT, THE ASSESSEE HAS TO UNDERTAKE VARIOUS FUNCTIONS LIKE, ( I) COLLECT RENEWAL PREMIUMS FROM ALL POLICYHOLDERS, (II) COLLECT PROPO SAL DEPOSITS TRANSACTION FROM AGENTS UNDER HIS/HER ORGANIZATION, (III) REGISTER PROPOSAL OF AGENTS WORKING UNDER HIS/HER ORGANIZATI ON, AND (IV) SUBMIT PROPOSAL OF AGENTS WORKING UNDER HIS/HER ORGANIZATI ON THROUGH ELECTRONIC MEDIA (E PROPOSAL), WHICH IS APART FROM WORK OF SELECTION AND APPOINTMENT OF AGENTS, TRAINING, GUIDING AND MOTIVA TING AGENTS, ETC. THEREFORE, THE EXPENSES INCURRED BY THE ASSESSEE AR E WHOLLY, NECESSARILY AND EXCLUSIVELY IN PERFORMANCE OF THE DUTIES OF A D EVELOPMENT OFFICER. HE SUBMITTED THAT THE REVENUE AUTHORITIES HAVE FAIL ED TO APPRECIATE THE DUTIES AND FUNCTIONS OF DEVELOPMENT OFFICER AND THE REFORE DENIED THE CLAIM OF THE ASSESSEE, WHICH IS UNJUSTIFIED. 9. AS FAR AS CLAIM OF EXPENSES OF RS.1,63,646/- IS CONCERNED, IDEAL SITUATION WOULD THAT THE ASSESSEE SHOULD FILE A CER TIFICATE FROM THE LIC ITA NO.526/RJT/2013 - 10 - DETERMINING EXPENSES INCURRED BY HIM FOR THE PURPOS E OF PROCURE LIC BUSINESS. NO SUCH CERTIFICATE HAS BEEN SUBMITTED, HENCE, IT MAKES OUR JOB VERY DIFFICULT. WE COULD HAVE REMITTED THIS MA TTER BACK TO THE FILE OF AO, BUT WE FIND THAT ASSESSEE, SHRI GIRIRAJSINH M. JHALA HAD ALREADY EXPIRED ON 19.3.2015. THIS LITIGATION IS BEING PUR SUED BY THE WIDOW. IT WILL BE QUITE DIFFICULT FOR THE WIDOW TO LAY HER HA ND ON ALL THE DETAILS FROM THE OFFICE OF LIC. THEREFORE, CONSIDERING SMA LLNESS OF THE AMOUNT INVOLVED IN DISPUTE AND THE HARDSHIPS, WE DEEM IT A PPROPRIATE TO ESTIMATE THE EXPENDITURE WHICH MIGHT HAVE BEEN INCU RRED BY THE ASSESSEE FOR PROCURING THE BUSINESS. THE LD.REVENU E AUTHORITIES HAVE NOT APPRECIATED SPECIFIC TYPE OF DUTIES OF DEVELOPM ENT OFFICER. IN ORDER TO EARN INCENTIVE BONUS, ASSESSEE HAS TO INCUR CERT AIN EXPENDITURE AND THEREFORE CLAIMING AN EXPENDITURE OF RS.163,646/- SPECIFIC TO THE TASK, OUT OF RS.6,06,097/- CANNOT BE DOUBTED TO BE NOT SP ENT WHOLLY AND EXCLUSIVELY IN PERFORMANCE OF HIS DUTIES. THEREFOR E, TAKING INTO CONSIDERATION PECULIAR FACTS OF THE CASE, AND SPECI FIC NATURE OF WORK AND DUTIES ASSOCIATED WITH DEVELOPMENT OFFICER, WE ARE NOT INCLINED TO SUSTAIN THE ADDITION MADE BY THE REVENUE AUTHORITIE S ON THIS ISSUE. ACCORDINGLY, ADDITION OF RS.1,63,646/- IS DELETED A ND THUS, PART OF GROUND OF APPEAL IS ALLOWED. 10. IN THE RESULT, APPEAL OF THE ASSESSEE IS ALLOWE D. PRONOUNCED IN THE OPEN COURT ON 26 TH SEPTEMBER, 2018. SD/- (WASEEM AHMED) ACCOUNTANT MEMBER SD/- (RAJPAL YADAV) JUDICIAL MEMBER AHMEDABAD; DATED, 26/09/2018