COMMISSIONER OF INCOME TAX Vs. SHIKHARCHAND JAIN

JUDGEMENT

(1.) IN this appeal preferred under Section 260A of the Income -tax Act, 1961 (for brevity 'the Act'), the Revenue has called in question the pregnability of the order dated January 5, 1999, passed by the Income -tax Appellate Tribunal, Jabalpur Bench, Jabalpur (in short 'the Tribunal'), I.T.A. No. 234/Jab of 1996.

(2.) THE facts which are essential to be adumbrated are that the assessee is a Development Officer in the Life Insurance Corporation of India. He received incentive bonus from his employer and on the said sum he claimed 40 per cent. deduction in his return filed for the assessment year 1994 -95. The Assessing Officer disallowed the deduction of the amount on the incentive bonus received by the assessee as it formed a part of salary and, hence, no such deduction was allowable. Being of this view he made prima facie adjustment and disallowed the claim while processing the return of the income under Section 143(1)(a) of the Act.

(3.) IT is noteworthy to mention here that this appeal was admitted on the following question of law :