- (1.) BY THE COURT : On an application filed under S. 256(1) of the IT Act, 1961, the Tribunal, Jaipur, has referred the following question for our opinion : "Whether on the facts and in the circumstances of the case, the Tribunal was right in upholding the order of the learned DC(A) on the ground that the issue before him was debatable and hence could not be considered as a mistake apparent on record rectifiable under S. 154, despite the fat that when the Tribunal decided the appeal, the issue was no longer debatable as far as the State of Rajasthan was concerned, in view of the decision of the Hon'ble Rajasthan in the case of CIT vs. Shiv Raj Bhatia (DB IT Ref. No. 8/1992 dt. 1st May, 1996) [since reported at (1996) 133 CTR Raj) 379] ?"
(2.) THE assessee is a Development Officer of the LIC of India. In his income-tax returns for both the years, the assessee had claimed deduction to the extent of 50 per cent from the incentive bonus received by him. The returns were processed under S. 143(1)(a) of the IT Act, 1961. Thereafter, it came to the notice of the AO that the assessee is not entitled for any deduction out of the amount of incentive bonus and issued the notice under S. 154 of the IT Act, 1961. After hearing the assessee, he withdrew the allowance of deduction from the incentive bonus claimed by the assessee. In appeal before the Dy. CIT(A), the Dy. CIT(A) allowed the claim of the assessee, holding that issue is debatable therefore, the deduction which has not been disallowed under S. 143(1)(a) cannot be withdrawn under S. 154 of the IT Act, 1961. None appeared for the assessee.
(3.) HEARD Mr. Singhi, learned counsel for the Revenue.;