COMMISSIONER OF INCOME TAX Vs. RAM KRISHNA BANIK

JUDGEMENT

(1.) : This is an application under S. 256(2) of the IT Act, 1961, seeking a direction to the Tribunal to submit a statement of the case.

(2.) THE basic facts as necessary for disposal of this application are--the assessee is an employee of the LIC, working as a Development Officer. Apart from salary, he also received incentive bonus, which was included in the tax declaration (sic deduction) certificate issued by the employer. THE assessee claimed deduction of 40% of the incentive bonus as expenses. THE ITO, by an assessment order dt. 2nd March, 1989, disallowed it, but on appeal preferred by the assessee it was allowed by the CIT(A) who held that the incentive bonus received by the assessee was not as an employee but on account of a contractual arrangement, as such, the deduction as claimed by the assessee was allowable. THE Revenue preferred an appeal before the Tribunal which was dismissed on 15th July, 1991, so also an application under S. 256(1) on 20th Jan., 1993. Hence, the present application under S. 256(2), seeking the statement of the case on the following questions of law :

(3.) NOW, adverting to the findings, the Tribunal in its order dt. 20th Jan., 1993, annexure-IV, has categorically held "with regard to the first question we are of the view that the finding of the Tribunal is essentially a finding of fact". Noting the rival contentions, the Tribunal in its order dt. 15th July, 1991, annexure-III, has held as follows :