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Section 16(i) of the Income-tax Act, 1961 - Salaries - Standard deduction - Assessment year 1979-80 - Whether in view of insertion of Explanation after proviso to section 16(i) retrospectively with effect from 1-4-1975, assessee was not entitled to separate standard deductions on amounts of salary received by him from three employers during relevant accounting year - Held, yes FACTS The assessee claimed separate standard deductions under section 16 on the amounts of salary from the three employers during the relevant accounting year. The ITO, however, granted standard deduction limited to the extent of Rs. 3,500 only. An appeal by assessee before the AAC was dismissed but on further appeal the Tribunal held that the assessee was entitled to separate deductions under section 16. On reference: HELD In view of the insertion of Explanation after the proviso to section 16(i) retrospectively with effect from 1-4-1975, the Tribunal was not justified in holding that the assessee was entitled to separate deductions under section 16 on the amounts of salary received by him from the three employers during the accounting year in question. Note : The decision is in favour of the revenue. R.C. Mukati for the Applicant. S.C. Bagadia for the Respondent. JUDGMENT Sohani, J.-By this reference under section 256(1) of the Income-tax Act, 1961 (hereinafter referred to as "the Act"), the Income-tax Appellate Tribunal, Indore Bench, has referred the following question of law to this court for its opinion : "Whether, on the facts and in the circumstances of the case, the Tribunal was justified in holding that the assessee was entitled to separate deductions under section 16 on salary received from the three employers during the account year although the deductions so allowed may thus exceed Rs. 3,500?" The material facts giving rise to this reference, briefly, are as follows: The assessment year in question is 1979-80. The assessee was during the relevant accounting year in the employment of three persons. From two employers, the assessee received salary of Rs. 6,000 and Rs. 24,750 respectively while from the third employer, the assessee received only perquisite consisting of…

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