Incentive bonus deduction: 40% allowance upheld for a Life Insurance Corporation development officer.

40% of the incentive bonus received by a Life Insurance Corporation Development Officer was held allowable as deduction. The Tribunal noted that the deduction had already been accepted in earlier Tribunal decisions and was supported by the Gauhati High Court, and it followed that settled view. The relief granted by the first appellate authority was therefore upheld, and the revenue's challenge failed.

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Issues: Whether 40% of the incentive bonus received by a Life Insurance Corporation Development Officer was allowable as deduction.

Analysis: The deduction claimed by the assessee had already been accepted in earlier decisions of the Tribunal and was also supported by the judgment of the Gauhati High Court. Following the settled view on the allowability of 40% deduction from incentive bonus, the Tribunal upheld the relief granted by the first appellate authority.

Conclusion: The deduction was held allowable and the revenue's challenge failed.

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