1990 (5) TMI 93

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....puting the total income. 2. The assessee is an individual working as a Developing Officer in the Life Insurance Corporation of India. Apart from salary he was also receiving an incentive bonus for bringing new business. He claimed that this incentive bonus could not be assessed as salary and in any case the expenses for earning this bonus should be allowed as a deduction. The ITO rejected both th....

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....missions, the claim of this assessee has to be upheld as in the cases of other Development Officers. 5. The decision of the Andhra Pradesh High Court relied on by the Revenue related only to the question whether the incentive bonus received by the assessee should be taken into account for the purpose of deduction of tax at source. That case did not deal with the further question whether what is r....

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.... of this deduction is in no way precluded by the grant of the standard deduction under s. 16(1). Since the assessee does not maintain accounts it becomes necessary to estimate such amount of expenses that has been incurred for the purpose of earning the incentive bonus that is liable to be included as part of the salary earned by the assessee. It is in this context that the Appellate Tribunal had ....