COMMISSIONER OF INCOME TAX Vs. HUKAM CHAND JAIN

JUDGEMENT

(1.) ON an application filed under Section 256(1), the Tribunal has referred the following question for our opinion :

(2.) THE assessee is a Development Officer of the Life Insurance Corporation. In the year under consideration, the assessee claimed deduction of 50 per cent, on account of expenditure out of the incentive bonus earned by him. THE return was processed under Section 143(1)(a) without any adjustment being made to the returned income. THE Assessing Officer, however, subsequently withdrew the claim of the assessee by passing an order under Section 154. THE assessee preferred an appeal before the Deputy Commissioner (Appeals). THE Deputy Commissioner (Appeals) quashed the order of the Assessing Officer under Section 154 of the Income-tax Act, 1961, on the ground that whether the assessee is entitled for deduction of any expenditure out of the incentive bonus, is a debatable issue, therefore, the Income-tax Officer, cannot withdraw the expenditure on incentive bonus in an order under Section 154 of the Act. THE view taken by the Deputy Commissioner (Appeals) has been affirmed by the Tribunal vide order dated March 4, 1997.

(3.) IN the result, we answer the question in the negative, i.e., in favour of the Revenue and against the assessee.