VERMA P N Vs. COMMISSIONER OF INCOME TAX

JUDGEMENT

(1.) THE Income-tax Appellate Tribunal, Jaipur Bench, Jaipur, for the assessment year 1985-86, at the instance of the assessee, under Section 256(1) of the Income-tax Act, 1961, has referred the following questions of law for the opinion of the High Court :

(2.) THE assessee was working as the Development Officer in the office of the Life Insurance Corporation at Sri Ganganagar. During the previous year relevant to the assessment year 1985-86, the assessee, in addition to the other remunerations, received incentive bonus from the Life Insurance Corporation of India. He claimed deduction to the extent of 50 per cent, on this amount of incentive bonus received by him from the Life Insurance Corporatipn. THE Income-tax Officer, B-Ward, Sri Ganganagar, disallowed the deduction by holding that the assessee is only entitled to the standard deduction permissible under Section 16 of the Act. THE Assessing Officer was further of the view that as per the Board's Instruction No. 1471, the deduction of 50 per cent, should not be allowed to the assessee.

(3.) THE two questions of law referred by the Tribunal for the opinion of ,this court, mentioned in paragraph 1 (page 24) above, are identical to those which were referred in Shiv Raj Bhatia's case [1997] 227 ITR 7 (Raj). THE facts of this case are also identical with the facts of Shiv Raj Bhatia's case [199.7] 227 ITR 7, who was also a Development Officer in the Life Insurance Corporation of India. For the same reasons, the abovequoted two questions are, therefore, answered in favour of the Revenue and against the assessee in the same manner.