S.C. WADHWA Vs. COMMISSIONER OF INCOME TAX

JUDGEMENT

(1.) IN this appeal, the appellant has prayed for determination of the following questions of law :

(2.) THE appellant, who was working as Development Officer in the services of the Life Insurance Corporation of India (for short, 'the Corporation') at Rohtak, filed return for the asst. yr. 1993 -94 declaring an income of Rs. 1,63,281. The AO finalised the assessment under s. 143(1)(a) of the IT Act, 1961 (for short, 'the Act'), at a total income of Rs. 4,38,670. While doing so, he rejected the appellant's claim for deduction of Rs. 1,81,282 which he had spent to earn incentive bonus. On appeal, the Commissioner of Income -tax (Appeals), Rohtak [for short, 'the CIT(A)'], granted relief to the appellant including deduction of Rs. 1,81,282.

(3.) FEELING aggrieved with the order of the CIT(A), the Revenue filed further appeal before the Income -tax Appellate allowed the Revenue's appeal and deleted the deduction of Rs. 1,81,282. The observations made by the Tribunal on this issue are as under :