- (1.) Heard Sri Rakesh Ranjan Agarwal learned counsel for the appellant and Sri Dhananjay Awasthi learned counsel appearing for the respondent-department. This is an appeal filed under Section 260A of the Income Tax Act 1961 against the judgment and order dated 18th June, 2003 of the Income Tax Appellate Tribunal in I.T.A. No. 458 (Alld) /1998 for the assessment year 1996-97.
(2.) The background facts of the case giving rise to this appeal are, that the Assessing Officer while scrutinising Form-24 and Form-16 submitted by the Life Insurance Corporation of India after issuing a notice to the responsible officers of Life Insurance Corporation of India created a demand of Rs. 1,06,800/- on the ground that the responsible officers of the LIC have wrongly allowed deduction of conveyance allowance and additional conveyance allowance which resulted in short deduction of tax. The shortfall and interest under Section 201 was computed and arrived at. The appeal was filed by the Life Insurance Corporation of India before the Commissioner of Appeal, Income Tax who held that the responsible persons of the Corporation have incorrectly allowed deduction for conveyance allowance and additional conveyance allowance suo motu which was beyond the purview of their jurisdiction. The Appellate Authority affirmed the order of the Assessing Officer against which the appeal was filed before the Income Tax Appellate Tribunal which too has been dismissed by the order which is impugned in this appeal.
(3.) The Appellate Tribunal insofar as the amount regarding recovery of tax is concerned directed the Assessing Officers to re-investigate into the matter after giving reasonable opportunity of being heard to the assessee and direct to produce the evidence of payment of tax by the Development Officers on the matter in question and to give finding thereafter. Insofar as the interest part was concerned, the appeal of the LIC was rejected. The assessee has come up in the appeal.;