COMMISSIONER OF INCOME-TAX Vs. CHAMAN LAL CHANDOK

JUDGEMENT

(1.) The Income-tax Appellate Tribunal, Chandigarh Bench, has referred the following questions of law, which arose out of its order dated August 18, 1992, for the assessment years 1988-89 and 1990-91 for the opinion of this court : Question in R. A. No. 268/chandi of 1992 :

(2.) Whether, on the facts and in the circumstances of the case, the Income-tax Appellate Tribunal is right in law in allowing deduction at 40 per cent. of incentive bonus, when the assessee had not actually incurred expenses to the extent of 40 per cent. wholly, necessarily, exclusively as provided under section 10 (14) of the Income-tax Act, 1961

(3.) We will first deal with the only question in R. A. No. 268 for the assessment year 1988-89 and question No. 2 in R. A. No. 269 for the assessment year 1990-91, which is common and pertains to incentive bonus. The said question is concluded by the judgment of this court in Income-tax References Nos. 105 and 106 of 1986, decided on October 27, 1998, in the case of B. M. Parmar, Development Officer, LIC v. CIT [1999] 235 ITR 679, wherein the question has been answered in favour of the Revenue and against the assessee. In that view of the matter, this question is answered in the negative, i. e. , in favour of the Revenue and against the assessee.