Deduction of incentive bonus was held to raise a referable question of law for High Court reference.

Deduction of incentive bonus under section 37, where not admissible under section 36(1)(ii), was treated as a referable question of law because it was covered by an earlier Supreme Court decision and arose from the Tribunal's order. On that basis, the issue was held fit for reference to the High Court, and the Tribunal was directed to state the case and refer the question.

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Issues: Whether the question relating to deduction of incentive bonus under section 37 of the Income-tax Act, 1961, when not admissible under section 36(1)(ii) of the Income-tax Act, 1961, was a referable question of law requiring reference to the High Court.

Analysis: The question raised was held to be directly covered by an earlier decision of the Court and to arise from the Tribunal's order. On that basis, it was treated as a question of law fit for reference rather than a non-referable issue.

Conclusion: The question was held to be a referable question of law and the Tribunal was directed to state the case and refer it to the High Court.

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