Commissioner of Income Tax vs BRANCH MANAGER, LIC OF INDIA, BARMER

N.N. Mathur, J.

This is a reference application u/s 256(2) of the Income Tax Act for directing the Tribunal to raise the question of law formulated in reference application arising out of the order of the Tribunal in ITA No. 1117/Jp/1997. It is submitted by both the learned counsel that this court by order dated 20-2-2001 in an identical matter Commissioner of Income Tax Vs. Branch Manager, Life Insurance Corporation of India, has directed the Tribunal to refer the question of law formulated therein.

Accordingly, this reference application u/s 256(2) of the Income Tax Act is allowed and we direct the Tribunal to state the case and refer the following question of law arising out of the order of the Tribunal for the opinion of this court :

"1. Whether on the facts and in the circumstances of the case the Tribunal was justified in law in cancelling the demands raised under sections 201(1) and 201(1A) of the Act ?

Whether on the facts and in the circumstances of the case the Tribunal was justified in law in holding that the Principal Officer (DDO) was justified in not deducting tax at source from conveyance allowance and additional conveyance allowance without certifying and verifying that the amount of these allowances had been actually incurred wholly, necessarily and exclusively for the performance of the duties of office ?"