COMMISSIONER OF INCOME TAX Vs. KALANI P S

JUDGEMENT

(1.) BY this reference under s. 256(1) of the IT Act, 1961 (hereinafter referred to as "the Act"), the Tribunal, Indore Bench, has referred the following question of law to this Court for its opinion:

(2.) THE material facts giving rise to this reference, briefly, are as follows : THE assessment year in question is 1979-80. THE assessee was during the relevant accounting year in the employment of three persons. From two employers, the assessee received salary of Rs. 6,000 and Rs. 24,750 respectively while from the third employer, the assessee received only perquisite consisting of furnished accommodation, the value of which was assessed at Rs. 12,000. THE assessee claimed separate standard deductions under s. 16 of the Act on the amounts of salary received by him from the three employers. THE ITO however, granted standard deduction limited to the extent of Rs. 3,500 only. An appeal preferred by the assessee before the AAC was dismissed but on further appeal before the Tribunal, the Tribunal held that the assessee was entitled to separate deductions under s. 16 of the Act and that the total amount thus admissible might exceed Rs. 3,500. Aggrieved by the order passed by the Tribunal, the Revenue sought a reference and it is at the instance of the Revenue that the aforesaid question of law has been referred to this Court for its opinion.

(3.) REFERENCE answered accordingly.