TMI Blog2018 (3) TMI 1300X X X X Extracts X X X X X X X X Extracts X X X X ..... the Income-tax Act or the Rules, whereby Medical, Conveyance and Sumptuary allowances are exempt from taxation, we hold that CIT is justified in invoking his revisionary jurisdiction u/s 263 of the I.T.Act. - Decided against assessee - ITA No.468/Coch/2016 And ITA No.469/Coch/2016 - - - Dated:- 22-3-2018 - Shri Chandra Poojari, AM And Shri George George K, JM For The Appellants : Sri . P . G . Jayasankar, Advocate For The Respondent : Sri . A . Santham Bose, CIT - DR ORDER Per Bench These appeals at the instance of two assessees are directed against two orders of the Commissioner of Income tax, passed u/s 263 of the Income-tax Act, 1961, both dated 14.03.2016. The relevant assessment y ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ompleted u/s 143(3) of the I.T.Act. The CIT had held that the allowances claimed as exemption on the basis of the recommendation of Shetty Commission Report as approved by the Hon ble Supreme Court were not exempted under the I.T.Act and hence the assessments are to be revised. The assessees had filed written objections against the notice issued proposing revision of the assessment orders. The assessees had brought to the notice of the CIT the nature and characteristics of the claim. The CIT, however, rejected the objections raised by the assessees and passed an order u/s 263 of the I.T.Act setting aside the assessment orders and directing the A.O. to deny exemption claimed for sumptuary, conveyance and medical allowances etc. The relevant ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the said recommendations have not been implemented by the appropriate authority then he ought to have sought judicial redress of the same rather than claiming these allowances as tax - free . 6 . In the absence of any amendment to the Act or the Rules there to, the admission of the claims of exemption made by the assessee and allowed by the Assessing Officer are erroneous and prejudicial to revenue . It appears that the Assessing Officer mistook the direction of the Hon'ble Supreme Court to implement the Shetty Commission recommendation as implementation per se . Such an understanding is not correct and it leads to an incorrect application of law . In view of the facts discussed supra, I set aside the order of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e heard the rival submissions and perused the material on record. The CIT while passing the order u/s 263 of the I.T.Act noted that the allowances claimed as exempt on the basis of recommendation of Shetty Commission Report, which is approved by the Hon ble Apex Court, has not been exempt under the Income-tax Act. It was further noticed by the CIT that the Assessing Officer mistook the direction of the Hon ble Apex Court to implement the Shetty Commission Report as implementation per se and such understanding of the A.O. is not correct and it leads to incorrect application of law. 8.1 The Oxford English Dictionary defines sumptuary means as a private expenditure in the interest of the State. The salient feature arising from it are (1) ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ons are matters which may generate room for relief in cases where no rules have been framed; in which event, the learned single Judge has rightly found that the remedy does not lie before this Court . 5 . For the aforesaid reasons, we are of the view that this has writ appeal has to fail . 6 . Before parting, we may note that an attempt was made even by the Division Bench during the pendency of this appeal to find out whether there could be a re - look at the issue by the executive . The Assistant Solicitor General of India was required to bring the issue involved in the case to the notice of the authorities concerned in the Central Government . 7 . We have seen the provisions of the Income Tax Act and the ..... X X X X Extracts X X X X X X X X Extracts X X X X
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