Section 10(14)(i)

Section 10(14)(i) — the law in short

What the courts have decided on section 10(14)(i), in one screen. Read this first; open an entry when you need the facts, the reasoning and the source.

• National Federation of Insurance Field Workers of India v Union of India High CourtHelps departmentHigh Courts differ
  LIC has started deducting tax on the conveyance allowance and additional conveyance allowance paid to development officers. Can the employees stop the deduction on the footing that the allowances are exempt under s.10(14)?
  The Orissa High Court said no and dismissed the writ petition. It held that after the 1987 amendment to s.10(14) and the insertion of Rule 2BB, the entire conveyance allowance and additional conveyance allowance are not exempt unless the expenses are actually incurred and that is proved to the satisfaction of the Assessing Officer; the employer remains bound to deduct under s.192, and the employee must establish the exemption in his own assessment.
• Life Insurance Corporation of India v Union of India High CourtHelps taxpayerHigh Courts differ
  Is there any High Court authority the other way on the LIC development officers' conveyance and additional conveyance allowance, and how far does it actually go?
  Yes. The Rajasthan High Court held that development officers of the LIC are entitled to claim exemption under s.10(14) for conveyance allowance and additional conveyance allowance, and directed the Department not to insist on the LIC deducting tax at source on them. But the holding is expressly conditional: it applies only upon the officers satisfying that the allowances were actually spent wholly, necessarily and exclusively in the performance of duties, and the Court twice said the ultimate liability of claiming and proving the exemption is on the employee.

Listed strongest first: Supreme Court, then High Court, then Tribunal, then CBDT. Nothing here has yet been read in full by a chartered accountant — open an entry to see where it came from.