Jawahar Lal Gupta, J. - (1.) IS the partner in a firm entitled to standard deduction under Section 16(i) of the Income-tax Act, 1961, against the salary drawn by him ? This is the short question that arises for consideration in this case. A few facts as relevant for the decision of this case may be briefly noticed.
(2.) THE assessee is a partner in a firm. He filed his returns for the assessment years from 1978-79 to 1980-81. Besides the share in the profits, he had also drawn salary from the firm. In respect of salary, a claim for deduction under Section 16(i) was made. This claim was accepted by the Income-tax Officer. However, on July 14, 1983, the Assessing Officer passed an order under Section 154 and disallowed the claim for deduction. The assessee filed an appeal. It was dismissed. He approached the Tribunal. The assessee having succeeded, the Revenue filed three petitions under Section 256(1). These petitions were accepted. The Tribunal has referred the following question for the opinion of this court : "Whether, on the facts and in the circumstances of the case, the assessee is entitled to standard deduction under Section 16(i) of the Income-tax Act, 1961, against the salary income from the firm in which he is a partner in each of the accounting periods relevant to the assessment years 1978-79, 1979-80 and 1980-81 ?"
(3.) MR. R. P. Sawhney, learned counsel for the Revenue, contended that the Tribunal had erred in accepting the claim of the assessee for deduction under Section 16(i), Learned counsel referred to the decisions in CIT v. Pramod Kumar Jain [1995] 216 ITR 598 (Raj) and CIT v. N. S. M. Sankarapandian [1996] 222 ITR 289 (Mad).;