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NATIONAL FEDERATION OF INSURANCE v. LIFE INSURANCE CORPORATION OF INDIA - WP(C) No. 9917 of 2005(E)  RD-KL 9773 (7 June 2007)
IN THE HIGH COURT OF KERALA AT ERNAKULAMWP(C) No. 9917 of 2005(E)
1. NATIONAL FEDERATION OF INSURANCE
2. R. JAYPRAKASH, (AGED 40,
1. LIFE INSURANCE CORPORATION OF INDIA,
2. THE EXECUTIVE DIRECTOR (MARKETING
3. THE SONAL MANAGER, CENTRAL ZONE,
4. THE ZONAL MANAGER, THE NORTH
5. THE ZONAL MANAGER, THE EASTER ZONE,
6. THE ZONAL MANAGER, THE NORTHERN ZONE,
7. THE ZONAL MANAGER, THE SOUTH CENTRAL
8. THE ZONAL MANAGER, THE SOUTHERN ZONE,
9. THE ZONAL MANAGER, THE WESTERN ZONE,
10. GOVERNMENT OF INDIA, MINISTRY
For Petitioner :SRI.S.V.RAJAN
For Respondent :SRI.S.EASWARAN
The Hon'ble the Chief Justice MR.H.L.DATTU The Hon'ble MR. Justice K.T.SANKARAN
O R D E R
H.L.DATTU, C.J. & K.T.SANKARAN, J.W.P(C).No.9917 of 2005
Dated, this the 7th day of June, 2007
H.L.Dattu, C.J. First petitioner is an association of Development Officers working in the Life Insurance Corporation of India and it is espousing the cause of its members who are working as Development Officers in various branches of the Life Insurance Corporation of India.
2. Second petitioner is the president of the first petitioner association.
3. These petitioners are seeking the following reliefs:
"(i) to declare that the rights and benefits of exemption from income tax for conveyance allowance and additional conveyance allowance paid by the 1st respondent Life Insurance Corporation of India to its Development Officers as per Section 10(4)(i) of the Income Tax Act, 1961 and Rule 2BB(i)(c) of the Income Tax Rules shall not be curtailed in any manner while deducting their income tax at source; (ii) to declare that the direction in Exhibit P6 to deduct income-tax at source on conveyance allowance and additional conveyance paid to the Development Officers in Life Insurance Corporation of India issued by the 2nd respondent is unjust, arbitrary, illegal and violative of Article 14 of the Constitution of India and void; W.P.(C) 9917/2005 -2- (iii) to issue a writ of mandamus or other appropriate writ, order or direction to the respondents not to deduct the income tax at source in respect of conveyance and additional conveyance allowance paid by the 1st respondent to its Development Officers."
4. The petitioners have made out several grievances in the writ petition and the grievances so made out by the petitioners, in our opinion, are wholly imaginary. Section 10(14) of the Income Tax Act read with Rule 2BB of the Income Tax Rules makes it very clear that what can be claimed as exemption is the amount actually spent exclusively for the purpose of business as a development officer.
5. The assessee can, while filing the annual return, definitely claim exemption from payment of the income tax by producing necessary certificate issued by the employer. When such claim is made, it is expected of the assessing officer to examine those claims with reference of section 10(14) of the Income Tax Act and grant him the exemption. Therefore, the directions sought for by the writ petitioner in this writ petition need not be granted. Accordingly the following:- Order The writ petition is disposed of. Liberty is reserved to the members of the first petitioner association to claim appropriate exemption before the assessing officer at the time of filing of their return under section 132 of the Income Tax Act. When such exemptions are claimed by the assessee, the assessing authority is directed to consider the same as envisaged under W.P.(C) 9917/2005 -3- section 10(14) of the Income Tax Act read with Rule 2BB of the Income Tax Rules. Ordered accordingly. (H.L.DATTU) CHIEF JUSTICE (K.T.SANKARAN)
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