2006 (10) TMI 98

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.... involved, they have been heard together and are being disposed of by this common order. 2 The main question of law which has been referred by the Income-tax Appellate Tribunal, Patna Bench, Patna, in the instant reference under section 256(1) of the Income-tax Act, 1961 (in short "the Act"), is "Whether, on the facts and circumstances of the case, the Income-tax Appellate Tribunal, Patna, was ....

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....evelopment Officer. The matter was taken up by the Assessing Officer under section 154 of the Act and later on approval was taken from the Deputy Commissioner for reopening of the case under section 147 of the Act and notice under section 148 of the Act was issued and the reassessment proceeding under sections 143(3) and 147 of the Act was completed by the Assessing Officer on March 16, 1994. In t....

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....ned by the assessee; who is a Development Officer in the LIC of India, is a part of salary and not professional income. 6 Undisputedly, incentive bonus is given to a Development Officer in accordance with a scheme called "The scheme of Incentive Bonus to Development Officer of the LIC of India, 1978". Under the said scheme, a formula has been provided for the purpose of determining incentive bo....

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....character of salary, the percentage basis being the measure of the salary and, therefore, such remuneration or recompense must fall within the expression "salary" as defined in rule 2(h) of Part A of the Fourth Schedule to the Act. 8 The Full Bench of the Karnataka High Court in the case of CIT v. M. D. Patil [1998] 229 ITR 71 after discussing the law in detail have held that incentive bonus gi....