TMI Blog1989 (3) TMI 6X X X X Extracts X X X X X X X X Extracts X X X X ..... sioner of Income-tax and receives pension which was assessed under section 15 on " salary ". The assessee claimed standard deduction under section 16(i) of the Income-tax Act, 1961. The Income-tax Officer disallowed the claim on the ground that the assessee was not an employee. The Appellate Assistant Commissioner agreed with the finding of the Income-tax Officer. On further appeal, the Tribunal held : "The problem is not really free from difficulty. We have very anxiously considered the contentions raised on behalf of both the sides. We may say straightaway that our task has become easier by virtue of a Tribunal's decision and it is very proper that we should follow the same. Apart from that, what we find is that, in this particular ca ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... f the view that the Tribunal has come to a correct decision in this case. The charge of tax on income from " salaries " is imposed by section 15 of the Act, which is as under : " 15. The following income shall be chargeable to income-tax under the head "Salaries" (a) any salary due from an employer or a former employer to an assessee in the previous year, whether paid or not ; (b) any salary paid or allowed to him in the previous year by or on behalf of an employer or a former employer though not due or before it became due to him ; (c) any arrears of salary paid or allowed to him in the previous year by or on behalf of an employer or a former employer, if not charged to income-tax for any earlier previous year. Explanation.-For the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... enefit or other perquisite ) or five thousand rupees, whichever is less ; and (b) in the case of any other assessee who is in receipt of such entertainment allowance and has been continuously in receipt of such entertainment allowance regularly from his present employer from a date before the 1st day of April, 1955, the amount of such entertainment allowance regularly received by the assessee from his present employer in any previous year ending before the 1st day of April, 1955, or a sum equal to one-fifth of his salary ( exclusive of any allowance, benefit or other perquisite ) or seven thousand five hundred rupees, whichever is the least. The word " pension " normally will not come within the ambit of the expression " Salary ". Secti ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... prove the exact expenditure on account of repairs; These two sections will have to be contrasted with section 37 where deduction is permitted on all expenditure wholly and exclusively incurred for the purpose of the business in the computation of the business income of the assessee. Similarly, under section 57(iii), expenditure laid out or expended wholly and exclusively for the purpose of making or earning "income from other sources" has to be allowed as deduction. In these two sections, it is the actual expenditure which has been incurred by the assessee that is allowed. But, unlike section 37 and section 57(iii), deductions under sections 17 and 24 are allowed on the basis of a legislative formula. The assessee does not have to prove tha ..... X X X X Extracts X X X X X X X X Extracts X X X X
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