Delhi H.C : the living allowances should be treated as exempt without verifying whether the said living allowance granted to the assessee to meet expenses was wholly, necessarily and exclusively incurred in the performance of his duties and without certifying whether the assessee actually and wholly spent the said living allowance ?

High Court Of Delhi

CIT vs. K.G. Hawkins

Sections 256(2), 256

B.N. Kirpal & C.L. Choudhry, JJ.

IT Case No. 177 of 1988

19th April, 1990

Counsel Appeared

B. Gupta & R.C. Pandey, for the Revenue : None appeared, for the Assessee

B. N. KIRPAL, J.:

The petitioner seeks reference of the following question of law to this Court :

“That the living allowances should be treated as exempt without verifying whether the said living allowance granted to the assessee to meet expenses was wholly, necessarily and exclusively incurred in the performance of his duties and without certifying whether the assessee actually and wholly spent the said living allowance ?”

2.The petitioner had sought reference of four questions to this Court in an application filed under s. 256(1). The Tribunal has referred three questions to this Court, but the question which is now proposed to be referred was not referred by the Tribunal on the ground that this question does not arise from the Tribunal’s order. The other questions of law were referred. We are in agreement with the Tribunal’s conclusion that the question which is now proposed did not arise out of the Tribunal’s order and, therefore, the decision of the Tribunal does not call for any interference.

3. Petition is dismissed. No costs.

[Citation :185 ITR 593]

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