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Mohd. Idris v. C.I.T. Lucknow - INCOME TAX REFERENCE No. 106 of 1997  RD-AH 1138 (26 April 2005)
INCOME TAX REFERENCE NO.106 OF 1997
Sri Mohd. Idris, Development Officer,
LIC Of India,. Bijnor. ....Applicant
The Commissioner of Income-tax, Lucknow. . ....Respondent
Hon'ble R.K. Agrawal, J.
Hon'ble Rajes Kumar, J.
The Income Tax Appellate Tribunal, New Delhi has referred to following question of law under section 256 (1) of the Income Tax Act, 1961, (hereinafter referred to as "the Act") for opinion of this Court.
"Whether on the facts and in the circumstances of the case, the Income-tax Appellate Tribual was right in upholding action of Assessing Officer in withdrawing deduction u/s 154 out of incentive bonus allowed to the assessee by L.I.C. Of India in assessment year 1990-91 ?"
The present Reference relates to the Assessment Year 1990-91.
Briefly stated, the facts giving rise to the present reference are as follows:
Applicant was a development officer in the LIC working at Dhampur branch, district Bijnore. During the assessment year applicant had received incentive bonus. Applicant had claimed certain expenses incurred by him for earning the bonus, which was allowed by the assessing officer in the original assessment. However, in proceeding under section 154 of the Act same was withdrawn. Order passed under section 154 of the Act have been confirmed by the Deputy Commissioner (Appeals) and upheld by the Tribunal. Tribunal has held that the incentive bonus was part of the salary and therefore, expenses claimed thereunder is not allowable.
We have heard learned counsel for the parties.
In view of the decision of this Court in I.T.R. No.93 of 1993 CIT, Kanpur Vs. Sri R.S.Nanda, Kanpur, decided on 15.03.2005 wherein this Court has held that the amount of incentive bonus received by the development officer of LIC forms part of salary and expenses incurred by the development officer for earning such incentive bonus is not allowable except standard deduction.
Respectfully following the aforesaid decision, we answer the question referred to us in the negative, i.e. in favour of the Revenue and against the assessee
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