COMMISSIONER OF INCOME TAX Vs. SUBHASH CHAND CHAUDHARY

JUDGEMENT

(1.) THIS is a petition by the Revenue under s. 256(2) of the IT Act, 1961 (for short, 'the Act'), for directing Income -tax Appellate Tribunal, Delhi Bench 'A', New Delhi (for short, 'the Tribunal'), to refer the following question of law for the opinion of this Court : "Whether, on the facts and in the circumstances of the case, the Tribunal was right in law in holding that the adjustment made in respect of incentive bonus on the basis of documents accompanying the return was outside the scope of s. 143 (1)(a) of the IT Act, 1961, and should have been made only after issue of notice under s. 143(2) -

(2.) THE respondent -assessee, who was employed as development officer in Oriental Insurance Company and was posted at Narnaul, received a sum of Rs. 46,045 as incentive bonus. He reflected the same in the return of income filed for the asst. yr. 1994 -95 and also claimed deduction of 40 per cent. After issuing notice under s. 143(1)(a) of the Act, the AO disallowed the deduction claimed by the assessee. The appeal filed by the assessee was allowed by Dy. CIT(A), provisions of s. 143(1)(a) of the Act could not have been invoked by the AO for disallowing the deduction.

(3.) FEELING aggrieved by the appellate order, the Revenue filed an appeal before the Tribunal which was dismissed on 5th reported judgments in Kamal Textiles vs. ITO & Ors. (1991) 95 CTR (MP) 274 : (1991) 189 ITR 339 (MP), S.R.F. Charitable Trust vs. Union of India & Ors. (1991) 100 CTR (Del) 160 : (1992) 193 ITR 95 (Del) and Khatau Junkar Ltd. & Anr. vs. K.S. Pathania & Anr. (1992) 102 CTR (Bom) 194 : (1992) 196 ITR 55 (Bom).