COMMISSIONER OF INCOME TAX Vs. ROHIT J PATEL

JUDGEMENT

(1.) AT the instance of the Revenue, the following question of law has been referred for the opinion of this Court by Tribunal under S. 256(1) of the IT Act, 1961 :

(2.) THE assessee is an individual who was getting salary income from two concerns, viz., M/s Vijay Flexible Container and M/s Pranav Trading Co. He claimed standard deduction under S. 16(i) of the IT Act, 1961 ("the Act") from each of the two employers at Rs. 3,500 each. The ITO allowed only one deduction of Rs. 3,500. The assessee appealed to the CIT(A), who accepted the contention of the assessee that he was eligible for the standard deduction under S. 16(i) in respect of each of the two employments. He, therefore, allowed the assessee's claim for additional deduction of Rs.

(3.) IN 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 such employer. In other