K.K. KANSAL Vs. COMMISSIONER OF INCOME TAX

JUDGEMENT

(1.) THIS appeal has been filed by the assessee against the order of the ITAT, Delhi Bench, "SMC -II", New Delhi (for short

(2.) MR . P.C. Jain, learned counsel for the appellant, firstly challenged the finding of the Tribunal that the incentive bonus received by the assessee from the LIC was assessable under the head salary.

(3.) ASSESSEE is a development officer of the LIC. In addition to the salary, he also received incentive bonus from the LIC. Assessee claimed that the incentive bonus was assessable as business income and claimed various expenses as deductions against the said income. All the authorities below held that in the light of the law laid down by this Court in B.M. Parmar vs. CIT (1998) 150 CTR (P&H) 548 : (1999) 235 ITR 679 (P&H), incentive bonus was assessable under the head "Salary" and, therefore, the assessee was only entitled to claim standard deduction under the provisions of s. 16 of the IT Act, 1961. Accordingly, the assessee's claim for treating incentive bonus as business income was rejected and consequently, the expenses claimed against the said income were not allowed as a deduction.