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Income Tax Appellate Tribunal, SURAT
Before: SHRI C.M.GARG & SHRI O.P.MEENA
आदेश /ORDER PERC.M.GARG, JUDICIAL MEMBER: This appeal has been filed by the Revenue challenging the order of Commissioner of Income Tax (Appeals)-IV, Surat (‘CIT(A)’ for short) dated 16.06.2014 for the assessment year (AY) 2010-11 passed in the first Appeal No.CAS-IV/52/13-14.
Ground Nos.4 to 6 of Revenue are of general in nature. The remaining effective grounds raised by Revenue reads as under:
2 ITA No.2436/AHD/2014/SRT (A.Y: 2010-11) Oil & Natural Gas Corporation Ltd. 1. The Ld.CIT(A) has erred on facts and in law in deleting the addition made u/s.201 (1) of the I.T. Act amounting to Rs. 1,17,80,353/- and the interest charged u/s. 201(1A) amounting to Rs. 42,40,944/- made by the A.O. 2. The Ld. CIT(A) erred on facts and in law by not appreciating that the specified allowances u/s. 10(14)(i) are exempt to the extent these are actually incurred for that purpose. 3. The Ld. CIT(A) erred on facts and in law by allowing the Uniform allowance, ignoring the fact whether such claim fulfilled the conditions as laid down in sec. 10(14)(i] of the I.T. Act. 3. We have heard the arguments of both sides and carefully perused the relevant material placed on the record of the Tribunal. The ld. Departmental Representative (DR) submitted that the first appellate authority was not correct on facts and in law in deleting the addition made u/s. 201(1) of the Income Tax Act, 1961 (for short ‘the Act’) and the interest charged u/s. 201(1A) of the Act as the specified allowance u/s. 10(14)(i) of the Act are exempt to the extent those are actually incurred for that purpose. The ld. DR submitted that the ld. CIT(A) has erred by allowing the uniform allowance ignoring the fact that whether such claim fulfills the conditions as made down in s. 10(14)(i) of the Act. The ld. DR finally submitted that impugned order may kindly be set aside by that of the AO.
The ld. Senior counsel strongly supported the first appellate order and submitted thatas per Circular No.15 dated 08.05.1969 a declaration from the employee that conveyance owned by him and is being used by him for the purpose of employment may be considered adequate by disbursing officer for the purpose of calculation of tax deduction at source u/s. 192 of the Act. The ld. senior counsel further submitted that the reimbursement of uniform allowance on the basis of declaration by the employees has been decided in
3 ITA No.2436/AHD/2014/SRT (A.Y: 2010-11) Oil & Natural Gas Corporation Ltd. favour of the appellant in his own case of Baroda Division by the ITAT ‘D’ bench, Ahmedabad in ITA No.184-185, and 1066 and 609-611/Ahd/2010 for AY 2009-10. Therefore, the ld. First appellate authority was right in allowing claim of assessee and in deleting the addition made on both the counts.
On careful consideration of above rival submissions on being asked by the bench, the ld. AR could not controvert the fact that in the similar facts and circumstances on the similar issue in the case of Baroda division(supra) the Tribunal has taken a view that the claim is allowing on the basis of declaration furnished by the employee. Obviously, uniform given to an employee for using the same during his duty hours is presumed to be used for the purpose of employment only and when the view has been taken by the Tribunal on the similar issue in the case of Baroda Division of ONGC then, we are unable to see any reason to take a deviated or different view on the same issue. It is pertinent to note that the ld. DR has vehemently relied on the CBDT Circular No.8/12 dated 05.10.2012 which is pertaining to the LTC allowance and the same is not applicable to the facility of uniform to the employees during duty hours.
In view of our discussion, when a circular of CBDT enabling the assessee for non deduction of tax from the reimbursement of allowances on the basis of utilization certificate of employee then the view which has already taken by the Tribunal in assessee’s own case supports the contention of the assessee that there was no liability for deduction of tax
4 ITA No.2436/AHD/2014/SRT (A.Y: 2010-11) Oil & Natural Gas Corporation Ltd. from the payments made to the employees as uniform allowance. Therefore, in our considered opinion, conclusion drawn by the first appellate authority is correct and sustainable and hence, we are unable to see any reason to interfere with the same and consequently we uphold the same. Accordingly, grounds raised by the Revenue are dismissed.
In the result,the appeal filed by the Revenue is dismissed.
Order pronounced in the open court on this day of 16thMarch, 2018.
Sd/- Sd/- (ओपीमीना) (सीएमगग�) (O.P.MEENA) (C.M.GARG) लेखासद�/Accountant Member �ाियकसद�/Judicial Member सूरत/Surat; �दनांक Dated :16thMarch, 2018 EDN आदेश क� ��त�ल�प अ�े�षत/Copy of the Order is forwarded to : 1. अपीलाथ� / The Appellant; 2. ��यथ� / The Respondent; 3. आयकरआयु�त(अपील) / The CIT, Surat; 4 Prl. CIT, Surat; 5. िवभागीय�ितिनिध,आयकरअपीलीयअिधकरण,सूरत/DR, ITAT,Surat; गाड� फाईल / Guard file. 6
आदेशानुसार/ BY ORDER, स�या�पत ��त//True Copy// सहायकप�जीकर / Assistant Registrar आयकर अपील�य अ�धकरण,सूरत / ITAT, Surat