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Section 15, read with section 28(i), of the Income-tax Act, 1961 - Salary - Chargeable as - Assessment year 1983-84 - Assessee, a LIC officer, received incentive bonus awarded to him for securing new business by propagating virtues of insuring lives - He claimed that it was business income and also claimed a deduction of expenses incurred for earning same - Tribunal held that while it was a part of salary, he, having put in extra efforts to earn same, was entitled to deductions as claimed - Whether conclusions of Tribunal were contradictory, and Tribunal should consider basic question whether amount received was part of salary or business income - Held, yes FACTS The assessee, a LIC officer, received certain incentive bonus during the assessment year 1983-84, and claimed it as business income entitled to a deduction of expenses on the ground that the bonus was given to him for securing new business by propagating the virtues of insuring lives. The ITO held that the incentive bonus was a part of the salary and, therefore, no expenses except standard deduction under section 16(1), were to be allowed in respect thereof. On appeal, the AAC held that the same was earned by the assessee by performance of field duties, and, therefore, could not be treated as part of his salary. The Tribunal, while agreeing with the views of the ITO, held that the assessee, having put in extra efforts to earn the incentive bonus, was entitled to deduction of the expenses incurred for earning the same. On reference : HELD The conclusions of the Tribunal were contradictory. The matter was accordingly remitted back to the Tribunal to consider the basic question whether the amount formed part of salary or was earned from business. The entitlement to expenses would be consequential to determination of the basic question about the nature of the Income. S.N. Sahu, K.C. Sahu and S.S. Rao for the Applicant. JUDGMENT 1. At the instance of the revenue, the following question has been referred to this Court under section 256(1) of the Income-tax Act, 1961 ('the Act'), by the Tribunal, Cuttack Bench, Cuttack : "Whether, on the facts and in the circumstances of the case, the Income-tax Appellate…

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