COMMISSIONER OF INCOME-TAX Vs. GAURIDATTA TIWARI CHANDRAPUR

JUDGEMENT

(1.) THE question referred to this Court by Tribunal under Section 256(1) of the Income Tax Act, 1961 is as under:-

(2.) '' The assessee is a Development Officer of the Life Insurance Corporation of India. He has claimed deduction of incentive bonus received by him from the employer. The said incentive bonus in question forms part of the salary and, therefore, no deduction except provided in Section 16(1) is admissible against the income tax from salary. A notice under Section 143(2)/148, therefore, was issued. The Assessing Officer/Income Tax Officer, Chandrapur for the year 1987-88 rejected the claim of the Assessee, therefore, an appeal was preferred. The Commissioner of Income Tax (Appeals) Nagpur, has allowed the said appeal and directed to grant claim of the assessee and to amend the demand notice accordingly.

(3.) '' The learned counsel appearing for the appellant has pointed out that a similar point of reference has been decided by the Division Bench of this Court in Commissioner of Income Tax vs. Gopal Krishna Suri, (2001) 248 ITR 819 = 2001 (3) Mh.L.J. 426. As the point is covered, we dispose of the present reference in view of the following observations.