TMI Blog2005 (1) TMI 24X X X X Extracts X X X X X X X X Extracts X X X X ..... held that whatever income is received by the Development Officers from the Life Insurance Corporation of India is by way of salary and has to be assessed under the same head - question referred by the Tribunal is answered in the negative, i.e., against the assessee - - - - - Dated:- 13-1-2005 - Judge(s) : G. S. SINGHVI., JASBIR SINGH. JUDGMENT The judgment of the court was delivered by Jasbir Singh.-The Income-tax Appellate Tribunal, "E" Bench, New Delhi (for short "the Tribunal") vide its order dated August 2, 1994, has referred the following question of law for the opinion of this court: "Whether, on the facts and in the circumstances of the case, the Income-tax Appellate Tribunal was right in law in allowing deduction at 40 p ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d K.K. Kansal v. CIT [2004] 270 ITR 375 and also a judgment of the Madhya Pradesh High Court in CIT v. A.K. Ghosh [2003] 263 ITR 536, and argued that the assessee was not entitled to any deduction from the incentive bonus paid by the Corporation. Shri Akshay Bhan supported the order of the Tribunal and argued that the assessee was rightly allowed deduction towards that part of the incentive bonus which he actually spent in business promotion activities. In support of his argument, Shri Akshay Bhan relied on the judgment of the Gujarat High Court in CIT v. Kiranbhai H. Shelat [1999] 235 ITR 635. We have given serious thought to the respective arguments and perused the record. Admittedly, while working as Development Officer in the Corpor ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... said that the Development Officers are working in a different capacity while procuring more business. They might have professional expertise in the insurance business, but that would not change their status while they work in the field. They remain Development Officers in the employment of the Life Insurance Corporation of India while working in the field also. Whatever income is received by the Development Officers from the Life Insurance Corporation of India is by way of salary and is to be assessed under the same head. There is nothing on record to show that under the scheme of incentive bonus framed by the Life Insurance Corporation of India in 1978, they were required to perform a duty different from the one for which they were appoint ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ction under section 16(i) of the Act is admissible under the head 'Salaries' and no separate deduction on account of expenditure is permissible." In K.K. Kansal's case [2004] 270 ITR 375, this court considered a similar question and observed: "A bare perusal of the above shows that it has been categorically held that the Development Officers are whole-time employees of the Life Insurance Corporation of India who are employed for promoting and developing life insurance business. It cannot, therefore, be said that while working in the field they are doing work in a different capacity. It has also been held that whatever income is received by the Development Officers from the Life Insurance Corporation of India is by way of salary and has ..... X X X X Extracts X X X X X X X X Extracts X X X X
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