9911796707
TMI Blog2006 (4) TMI 64X X X X Extracts X X X X X X X X Extracts X X X X ..... heme, 1997 is not the income of the assessee and further it is not a part of salary of the recipient D.O. ignoring the factual position that details of expenses incurred have not been reported to the Branch Manager (Paying Officer) on the basis of which it could be inferred that these allowances were the reimbursement of actual expenses ?" 2.The Income Tax Officer rejected the contention of the assessee to the effect that in the year 1997 Life Insurance Corporation of India framed two separate Schemes, namely: Incentive Bonus Scheme, 1997 and Reimbursement of Expenses Scheme, 1997. The amounts paid to the Development Officer under the Incentive Bonus Scheme, was taxable and the income tax was being deducted thereon as per the rules whereas ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ce Corporation of India for the year 1999-2000 had been accepted on the same issue. 6.The Revenue went in appeal before the Tribunal against the order passed by the Commissioner of Income Tax (Appeals) and reiterated it's stand that the payments made to Development Officer under Reimbursement of Expenses Scheme, 1997, are to be treated as part of the salary of the Development Officer, hence, TDS was required to be deducted thereon. On the other hand, the assessee, inter alia, referred two earlier orders in I.T.A. Nos. 218, 209 and 216 /Chandi/02 dated 30.4.2004 of the Tribunal in the case of the assessee wherein the issue was decided against the Revenue and in favour of the assessee, which orders were not appealed against. 7.Besides this ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e. They are required to discharge the duties and obligations which, inter alia, include development of life insurance business of the corporation. The very first duty enumerated for the Development Officer is to develop and increase the production of new insurance business in the planned way, as far as practicable in the area that may be allotted to him from time to time. The other duties and obligations include the duty to supervise and to guide the activities of the agents placed under the supervision of the Development Officers; to recruit new agents so as to develop agency force; and to act generally in such a way as to activate existing agents and to motivate new agents and to render certain services to policyholders. The officer is al ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e business and, thus, the payment of additional conveyance allowance is a reimbursement for actual expenditure incurred by the Development Officers on account of conveyance in relation to performance of their duties and the said expenditure has a direct nexus with the performance of duties for development of the insurance business by way of meeting several people and to enrol new life insurance agents and to meet the insurance persons for encouraging them to take insurance policies. Naturally, in such circumstances, touring expenses are incurred on conveyance. Such conveyance expenses are reimbursed by the employer as per the prescribed norms in the name of additional conveyance allowance. The certificate is given by the LIC-employer ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e Tax (Appeals) and dismissed the appeal of the Revenue. 9.For the reasons given above and respectfully concurring with the view taken by Rajasthan High Court in L.I.C.'s case (supra),[2003]260 ITR 41, we do not find any reason to differ with the view taken by the Tribunal and hold that no substantial question of law arises in the present case. 10.Faced with this the counsel for the Revenue raised the plea that the expenses claimed by the assessee were not admissible to the extent that they had been claimed. We are afraid this plea of the assessee does not fit in the domain of a substantial question of law, if examined on the guiding principles laid down for entertaining of appeals under Section 260 A of the Act. 11.In view of our above ..... X X X X Extracts X X X X X X X X Extracts X X X X
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