CIT PATIALA vs. SH.L.R.SANDAL,DO,LIC OF INDIA

ITR/127/1999HC Punjab & HaryanaPHHC01038559199904 December 2006Author: MR. JUSTICE ADARSH KUMAR GOEL,MR. JUSTICE RAJESH BINDAL2 pages
AI SummaryDismissed

What were the facts?

This case involves a reference to the High Court of Punjab and Haryana concerning an Income Tax Appellate Tribunal (ITAT) order dated July 20, 1998, pertaining to assessment year 1991-92. The assessee is Shri L.R. Sandal, a Development Officer with LIC of India, Abohar. The Revenue is the Commissioner of Income Tax, Patiala. The dispute centers on the exemption of expenses incurred by the assessee in the performance of duty, as certified by LIC, under Section 10(14) of the Income Tax Act, 1961, despite the absence of documentary evidence for such expenditure. The ITAT had upheld the order of the Commissioner of Income Tax (Appeals) which granted this exemption.

What did the High Court hold?

The High Court answered the referred question of law in favour of the Revenue and against the assessee. The Court found that the issue was covered by its previous judgment in B.M. Parmar V. C.I.T. (1999) 235 ITR 679. Furthermore, in a more recent judgment dated September 5, 2006, in I.T.R. No. 15 of 1995 (The Commissioner of Income Tax, Haryana, Rohtak Vs. Kamal Kishore Batra, DO, LIC, Kalanaur, Rohtak), the Court had also answered a similar question in favour of the Revenue and against the assessee. The ratio decidendi is that exemption under Section 10(14) for expenses incurred in the performance of duty requires substantiation, and a mere certification by the employer without documentary evidence is insufficient. The references were disposed of accordingly.

What were the issues?

1. Whether, on the facts and in the circumstances of the case, the learned Tribunal is right in law in upholding the order of the CIT(A) and holding that any amount certified by LIC as spent by the assessee exclusively in the performance of duty is to be treated as exempt under Section 10(14) of the Income Tax Act, 1961, irrespective of the absence of documentary evidence for such expenditure? Assessee's Contention: The judgment does not record any specific contentions made by the assessee before the High Court. However, the ITAT's decision, which was upheld, implies that the assessee argued for the exemption based on LIC's certification. Revenue's Contention: The revenue's position, as indicated by the High Court's decision, is that the exemption under Section 10(14) cannot be granted solely on the basis of a certification by LIC without supporting documentary evidence.

Which sections of the Income-tax Act were involved?

Section 10(14)

AI-generated summary — verify with the full judgment below

Cause title — parties, addresses and appearances
I.T.R No.127 of 1999 -1- *** IN THE HIGH COURT OF PUNJAB AND HARYANA AT CHANDIGARH I.T.R No.127 of 1999 Date of decision:4.12.2006 Commissioner of Income Tax Patiala ...Petitioner Versus Shri L.R.Sandal, Development Officer, LIC of India, Abohar ...Respondent CORAM: HON'BLE MR.JUSTICE ADARSH KUMAR GOEL HON'BLE MR.JUSTICE RAJESH BINDAL Present: Dr.N.L.Sharda, Advocate for petitioner ****

JUDGMENT Following question of law has been referred for opinion of this Court by the Income Tax Appellate Tribunal, Amritsar Bench, Amritsar arising out of its order dated 20.7.1998 passed in I.T.A.No.367(ASR)92, in respect of the assessment year 1991-92. “Whether on the facts and in the circumstance of the case, the ld. Tribunal is right in law in upholding the order of the CIT(A) and holding that whatever amount has been certified by the LIC as spent by the assessee to meet the expenses exclusively in the performance of duty, the same is to be treated as exempt u/s 10(14) of the I.T.Act, 1961 irrespective of the fact that no documentary evidence is available with the assessee for such expenditure?”

We find that the issue stands covered in

The order continues below.

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