Law: Income Tax Act, 1961

Section: 256(2)

Income-tax---Reference---Deduction---Whether L.I.C. Development Officer is entitled to claim 40 per cent. deduction as expenses from incentive bonus or commission---Conflict of opinion among High Courts---Question to be referred---Indian Income Tax Act, 1961, S.256(2). Held, that whether the assessee, a Development Officer in the L.I.C., was entitled to claim deduction of 40 per cent. as expenses out of incentive bonus or commission was a question of law. Where there is a conflict of opinion among High Courts, a referable question of law arises. CWT v. Gayatridevi (Smt.) (1996) 222 ITR 797 (MP.) ref. Choudary (K.A.) v. CIT (1990) 183 ITR 29 (AP.) ref. JUDGMENT A. R. TIWARI, J.---The applicant (Commissioner of Income-tax, Bhopal) has filed these applications under section 256(2) of the Income Tax Act, 1961 (for short "the Act"), seeking a direction to the Tribunal to state the cases and to refer the common question of law as contained in the applications and extracted below in respect of the two assessees, M.L. Jain, non-applicant, in Miscellaneous Civil Case No.203 of 1992, Miscellaneous Civil Case No.207 of 1992 and Miscellaneous Civil Case No.216 of 1992 for the assessment years 1983-84, 1984-85 and 1985-86 and nonapplicant/assessee, S.C. Nigam, in Miscellaneous Civil Case No.208 of 1992, Miscellaneous Civil Case No.209 of 1992 and Miscellaneous Civil Case No.210 of 1992 for the assessment years 1983-84 and 1984-85 and 1985-86 arising out of the orders, dated July 16, 1991, passed by the Tribunal in I.T.As. Nos.583, 584 and 585/(Ind) of 1988 after rejection of the application registered as R.As.Nos.301, 302 and 303/(Ind) of 1991 on November 28, 1991, and orders dated June 10, 1991, passed by the Tribunal in I.T.As. Nos.467, 468 and 469/(Ind) of. 1987 after rejection of the applications registered as R.A. Nos.146, 147 and 148/(Ind) of 1991 on November 22, 1991, respectively, for the above mentioned assessment years presented under section 256(1) of the Act, for our opinion: "Whether, on the facts and in the circumstances of the case, the Income-tax Appellate Tribunal was justified in holding that incentive bonus and additional conveyance allowance granted to…

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