1996 (7) TMI 53

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....L J. --- The following question is required to be referred by the Income-tax Appellate Tribunal, Amritsar Bench, to this court for its opinion under section 256(2) of the Income-tax Act, 1961 (for short, "the Act") : "Whether, on the facts and in the circumstances of the case, the learned Tribunal is right in law in upholding the Deputy Commissioner of Income-tax (Appeals)' order allowing deduc....

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.... to tax. The assessee went in appeal before the Deputy Commissioner and succeeded. The Tribunal upheld the order of the Deputy Commissioner whereby deduction at the rate of 40 per cent. had been allowed from the income by way of incentive bonus. An application was moved before the Tribunal under section 256(1) of the Act asking for a reference of the question regarding the deductibility on a....

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....hould be filed or whether a reference be made. The Board advised the tax authorities that filing of the Departmental appeal/reference should be selective. The authorities were reminded that guidelines had been issued laying down monetary limit of revenue effect of Rs. 10,000 for filing appeals before the Appellate Tribunal, Rs. 30,000 for references before the High Court and Rs. 60,000 for appeals....

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....tal tax effect for a total period of six years including the year under reference was Rs. 86,625. It is also stated that many other cases of similarly situated persons are pending before the tax authorities and, in the light of the total tax effect of similar other cases, reference could not be declined by the Tribunal simply for the reason that the tax effect during the year under reference was l....