COMMISSIONER OF INCOME TAX Vs. SAURABH KULSHRESHTHA

JUDGEMENT

(1.) IN this petition filed under S. 256(2) of the IT Act, 1961 (for short, "the Act"), the petitioner has prayed for issuance of a direction to the Income -tax Appellate Tribunal, Delhi Bench "C", New Delhi (for short "the Tribunal"), to draw up a statement of the case and refer the following question of law to this Court for its opinion :

(2.) THE facts of the case are that while working as a Development Officer in the Life Insurance Corporation of India, the respondent -assessee filed a return on 16th Aug., 1994 for the asst. yr. 1994 -95 declaring an income of Rs. 54,710. During the relevant year, he had received incentive bonus amounting to Rs. 46,012 out of which he claimed deduction at 40 per cent as expenses besides deduction under S. 16(i) of the Act. The AO processed the return under S. 143(1)(a) of the Act and disallowed the claim of deduction on incentive bonus by making the following observations :

(3.) IN our opinion, the Dy. CIT(A) and the Tribunal have correctly interpreted the provisions of s. 143(1)(a) of the Act for holding that the AO could not have invoked that provision for disallowing deductions claimed by the assessee in respect of incentive bonus. We are further of the view that the AO could not have passed an order of adjustment of Rs. 18,140 without giving notice to the assessee and the conclusion recorded by the Dy. CIT(A) and the Tribunal on this aspect of the matter does not suffer from any legal error giving rise to a referable question of law. Hence, the petition is dismissed.