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2003 (1) TMI 80 - RAJASTHAN HIGH COURTWhether the additional conveyance allowance paid by the Life Insurance Corporation of India (in short, "the LIC") to its Development Officers in terms of the norms of the business fetched by them as per circular dated March 3, 1987, issued by the Life Insurance Corporation is exempt under section 10(14) of the Income-tax Act, 1961, hereinafter referred to as "the Act of 1961", as special allowance or not? - Therefore, the Life Insurance Corporation cannot be insisted for deduction of tax to be deducted at source to the extent such conveyance allowance/additional conveyance allowance is exempt under rule 2BB and further such minimum limit is set from time to time. The ultimate liability of claiming exemption and proving the same is on the employee-assessees, i.e., the Development Officers. - we allow these special appeals. We direct the Department not to insist upon the Life Insurance Corporation of India to deduct the income-tax at source in respect of conveyance and additional conveyance allowance, paid by it to its Development Officers. The assessment order is quashed and set aside.
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