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2023 (12) TMI 638 - ITAT KOLKATAAssumption of jurisdiction u/s. 154 by AO - denial of deduction on account of Sumptuary Allowance for computing the income from Salary - assessee is an individual and is an employee under the West Bengal Judicial Services - HELD THAT:- AO has referred to the CBDT instruction dated 24.09.1966 in order to treat sumptuary allowance as entertainment allowance and made the said adjustment. Since the facts relating to sumptuary allowance is appearing in the revised return itself and it was not any new information but for computing the correct income and also for rectifying the apparent mistake committed while framing the assessment, ld. AO has made the said adjustment u/s 154 of the Act. We are therefore, of the view that legal issue raised by ld. Counsel for the assessee has no merit and hence, ground nos. 1 & 2 are accordingly dismissed. Merits of the case as observed that assessee has relied on the decision of Shri Ajay Godara vs. ITO [ 2018 (6) TMI 1845 - ITAT JAIPUR] wherein similar issue of sumptuary allowance was for consideration and this Tribunal held that sumptuary allowance is exempt from payment of tax - Thus we are inclined to hold in favour of the assessee and delete the addition. Assessee appeal is partly allowed.
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