2001 (6) TMI 62

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....the Tribunal has referred the following : "Whether, on the facts and in the circumstances of the case, particularly, when the incentive bonus has been assessed under the head 'Salary' and not as professional income, the Income-tax Appellate Tribunal was justified in law in allowing 40 per cent. deduction from the incentive bonus ?" The assessee is a Development Officer of the Life Insurance ....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....he apex court in CIT v. Vegetable Products Ltd. [ 1973] 88 ITR 192, the view favouring the assessee be taken. None appeared for the assessee though the matter was listed 2/3 times. Heard. learned counsel for the Revenue. Learned counsel for the Revenue submits that the ratio of 'the case in CIT v. A. A. Baniyan [1992] 197 ITR 717 (Bom), is not applicable as there was a finding that the assessee....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....There is a clear relation of employer and employee between the assessee and the Life Insurance Corporation., The incentive bonus on commission which has been paid for the extra work of the assessee by the employer, which is in lieu or in addition to the salary and forms part of salary by virtue of section 17(1) of the Income-tax Act, 1961. The standard deduction has already been allowed to the ass....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

.... Bombay High Court has allowed deduction only on the ground that the Department itself has treated that bonus amount as professional receipt and that was not challenged before the High Court. Therefore, the High Court has allowed the deduction of 40 per cent. out of the bonus receipt. In the case of K. A. Choudary v. CIT [1990] 183 ITR 29, the Andhra Pradesh High Court has relied on the decisio....