TaxTMI 
TaxTMI 
2018 (11) TMI 470
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....has erred in confirming addition of Rs. 3,30,893/- made by the AO with the help of section 10(14) of the Income Tax Act, 1961. 3. Brief facts in this regard are that the assessee is a Development Officer with Life Insurance Corporation of India Ltd. ("LIC" for short). He filed return of income on 25.5.2010 declaring total income at Rs. 13,81,040/-. This income includes an amount of Rs. 11,02,977/- representing incentive bonus received from LIC. Return of the assessee was selected for scrutiny assessment and notices under section 143(2) along with 142(1) of the Act were issued and served upon the assessee. During the assessment the AO noticed that the assessee has claimed 30% deduction out of incentive bonus received. On further examinati....
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.... in Tax Appeal No.13/RJT/2016 and others order dated 18.4.2018. On the other hand, the ld.DR while supporting orders of the Revenue authorities below submitted that there is no provision in the Income-tax Act to provide any deduction for earning incentive bonus, which is assessable under the head "salary" income, therefore, claim of the assessee is not allowable. 5. We have considered rival submissions and gone through the record. On this issue, we would like to take note of decision of the Tribunal in the case of Nitin T. Bhuptani (supra) relied upon the assessee to support to its case. The relevant portion of the decision reads as under: "At this stage, before adverting to the specific claim made by the assessee, we would like....
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....tomers oriented functions through online portal from his/her Office. Initially, the Senior Business Associate shall be authorized to: 1.Collect Renewal Premiums from all policyholders. 2.Collect Proposal Deposits transaction from agents under his/her organization. 3.Register Proposal of agents working under his/her organization. 4.Submit Proposal of agents working under his/her organization through Electronic Media (E Proposal). The following add on functions will be allowed to a Senior Business Associates. 1.Issue of Policy Status Reports. 2.Issue of Revival /Loan/Surrender value quotations. 3.Issue of forms. 4.Issue of Certificates to the policyholders for in....
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....gar), Nagpur, Patna, Pune (including Pimpri & Chinchwad). Surat, Vadodara, Varanasi, Vishakhapatnam (including Gajuwaka). All Other Places. Chennai Mumbai -including areas comparising within the limits of mumbai Muncipal Corporation (Greater Mumbai), Dombivlli, Kalyan, Thane, Bhawandi, Uthasnagar Bassein Muncipalities and Navi Mumbai New Delhi-Faridabad, Ghaziabad, gurgaon, Noida. The following benefits will be provided to such Senior Business Associates for marketing and customers related services: 1. One time interest free advance for making alternations in the office infrastructure, renovation, purchase of furniture etc. As shown below: Par....
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....llowed reimbursement towards various transactions. However at the end of the quarter the Sr. Divisional Manger in-charge shall review the total transactions made and in case the Senior Business Associates has fulfilled the quarterly target based on the monthly target of the concerned months. He/she shall be paid the reimbursement towards Office maintenance including the month/s for which he could not achieve the benchmark. It may be noted that the deficit for a particular quarter shall not be carried forward to the next quarter. Additional reimbursement: The additional reimbursement allowed to such Senior Business Associates for collection of renewal premium/proposal deposits, submission and registration of E proposal shal....
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....eimbursement of expenses incurred for on behalf of L1C for function which were normally performed by LIC." 6. In the light of the above, let us examine claim of the assessee. The assessee claimed deduction of Rs. 3,30,893/- in respect of expenditure incurred out of incentive bonus. The same was rejected by the AO on the ground that it was not allowable under section 10(14) of the Act, since the assessee has assessed under the head "salary". It cannot be disputed that as a Development Officer of LIC, main task is to develop business for the LIC. For that, the DO has to undertake various functions like, (i) collect renewal premiums from all policyholders, (ii) collect proposal deposits transaction from agents under his/her organization, (i....