TMI Blog2023 (12) TMI 638X X X X Extracts X X X X X X X X Extracts X X X X ..... 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. - Dr. Manish Borad, Accountant Member And Sonjo ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Hooghly within the scope of s. 154 of the Act and the specious conclusion reached on that behalf is completely unfounded, unjustified, and untenable in law. 3. FOR THAT the Ld. Commissioner of Income Tax (Appeals), N.F.A.C. was absolutely in error in upholding the impugned disallowance of deduction claimed in respect of the sumptuary allowance to the extent of Rs. 40,160/- by the Ld. Income Tax Officer, Ward 24(3), Hooghly misreading the C.B.D.T. Circular No. 35/32/66-IT(B), dated 24-9-1966 and his purported findings on that behalf basing on extraneous parameters not germane to the issue in dispute is wholly illegal, illegitimate, and infirm in law. 3. Perusal of the above grounds reveals that the grievance of the assessee is two ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... mptuary 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. 7. So far as merits of the case are concerned, we observe that ld. Counsel for the assessee has relied on the decision of the Coordinate Bench of ITAT Jaipur in the case of Shri Ajay Godara vs. ITO in ITA No. 614/JP/2016 order dated 19.06.2018 wherein similar issue of sumptuary allowance was for consideration and this ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... a person, who is in receipt of salary from the Government, to the extent that such allowance is required to be deducted in computing the income chargeable under the head Salaries under section 16(ii)(a), may be regarded as an allowance exempted from payment of income-tax. Allowance in the nature of entertainment allowance, to the extent such allowance is deductible under clause (ii) of section 16 is excluded from the term salary under Explanation (2)(iv) [as it stood before the amendment made by the Income-tax (Amendment) Rules, 1974], to rule 3(a) of the Income-tax Rules, and, therefore, sumptuary allowance may not be included in the term salary for the purposes of said rule. In view of the above CBDT clarification we hold that ..... X X X X Extracts X X X X X X X X Extracts X X X X
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