COMMISSIONER OF INCOME TAX Vs. P N TEWARI

JUDGEMENT

(1.) BY THE COURT : On an application filed under S. 256(1) of the IT Act, 1961, the Tribunal, Jaipur, has referred the following question for our opinion :

(2.) THE assessee is a Development Officer of the LIC of India. In his income-tax returns for both the years, the assessee had claimed deduction to the extent of 50 per cent from the incentive bonus received by him. The returns were processed under S. 143(1)(a) of the IT Act, 1961. Thereafter, it came to the notice of the AO that the assessee is not entitled for any deduction out of the amount of incentive bonus and issued the notice under S. 154 of the IT Act, 1961. After hearing the assessee, he withdrew the allowance of deduction from the incentive bonus claimed by the assessee. In appeal before the Dy. CIT(A), the Dy. CIT(A) allowed the claim of the assessee, holding that issue is debatable therefore, the deduction which has not been disallowed under S. 143(1)(a) cannot be withdrawn under S. 154 of the IT Act, 1961.

(3.) HEARD Mr. Singhi, learned counsel for the Revenue.