1990 (5) TMI 93 - AT - Income Tax

Summary

The appeals by the Revenue were dismissed by the Appellate Tribunal ITAT MADRAS-C. The AAC allowed a deduction of 40% from the incentive bonus received by the assessee. The incentive bonus was considered as part of the salary income, but a deduction for expenses was allowed. The decision was based on the treatment of incentive bonuses for other Development Officers. The Andhra Pradesh High Court decision cited by the Revenue was found to be unrelated to the specific issue in this case. The order of the AAC was upheld, directing 60% of the incentive bonus to be treated as salary income.