1994 (11) TMI 109

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....the instance of the Revenue, the following question of law has been referred for the opinion of this court by the Income-tax Appellate Tribunal under section 256(1) of the Income-tax Act, 1961: "Whether, on the facts and in the circumstances of the case and having regard to the provisions of section 16(i)(a) and (b) of the Income-tax Act, 1961, the Tribunal was justified in law in holding that ....

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.... therefore, allowed the assessee's claim for additional deduction of Rs. 3,500. The appeal of the Revenue against the order of the Commissioner of Income-tax (Appeals) was rejected by the Tribunal. Hence, this reference. Section 16(i) of the Income-tax Act, 1961, as it stood at the material time, so far as is relevant, reads: " 16. Deductions from salaries.-The income chargeable under the he....

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....course of computation of deduction under the above provision, a controversy arose whether the deduction was to be computed with reference to the aggregate amount of salary derived by the assessee or separately with respect to the amount of salary received from each employer. In other words, whether the maximum monetary ceiling would be applicable to the deduction under section 16(i) in respect of ....

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....ry is due from more than one employer, the deduction admissible under clause (i) of section 16 shall be computed with reference to the aggregate amount of salary due to the assessee and such deduction shall in no case exceed the monetary ceiling specified therein. With the insertion of the above Explanation, the legal position (in regard to assessments for the assessment year 1975-76 and onward....