- (1.) BY THE COURT : On an application filed under S. 256(1) of the IT Act, 1961, Tribunal has referred the following questions for our opinion : "Whether, on the facts and in the circumstances of the case, the Tribunal is correct in law in upholding that the incentive bonus received by assessee from Life Insurance Corporation of India constitutes income from salary ?" "Whether, on the facts and in the circumstances of the case, the Tribunal is right in law in holding that no expenditure is allowable to the assessee against earning of incentive bonus, except standard deduction under S. 16(i) of the IT Act ?"
(2.) ASSESSEE is a salaried employee of the Life Insurance Corporation of India. In addition to his salary and other allowances the assessee received incentive bonus of Rs. 1,00,599, Rs. 96,968, Rs. 1,34,581 and Rs. 1,07,600 for asst. yrs. 1985-86, 1986-87, 1987-88 and 1988-89 respectively from the Life Insurance Corporation for performance of his duties. Assessee claimed that he should be allowed deduction of 40 per cent from this incentive bonus on the basis that he has incurred some expenses for earning this bonus. The claim of the assessee was negatived by the AO. CIT(A) allowed the claim of the assessee. In appeal before the Tribunal, the Tribunal relied on its decision in the case of Jugraj Jain vs. ITO (1991) 39 ITD 154 (Jp) and on the decision of Andhra Pradesh High Court in the case of K.A. Choudhary vs. CIT (1990) 183 ITR 29 (AP) : TC 58R.253 and decided the issue against the assessee.
(3.) NONE appeared for the assessee. Heard learned counsel for the Revenue Mr. Singhi. Mr. Singhi brought to our notice that similar issue has been considered by this Court in the case of H.M. Pareek vs. CIT (DBIT Ref. No. 18/95) decided on 5th July, 2002 [reported at (2002) 177 CTR (Raj) 309-Ed] wherein this Court has held that salaried employee of the LIC is not entitled for any deduction on incentive bonus. Following the view taken in the case of H.M. Pareek vs. CIT (supra), we find no infirmity in the order of the Tribunal. In the result, we answer both the questions in affirmative i.e., in favour of the Revenue and against the assessee. Reference so made stands disposed of accordingly.;