TMI Blog2001 (1) TMI 31X X X X Extracts X X X X X X X X Extracts X X X X ..... , the petitioner has prayed for issuance of a direction to the Income-tax Appellate Tribunal, Delhi Bench "C", New Delhi (for short "the Tribunal"), to draw up a statement of the case and refer the fallowing question of law to this court for its opinion : "Whether, on the facts and in the circumstances of the case, the Tribunal was right in law in holding that adjustment made in respect of incen ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... wing observations : "The incentive bonus claimed as deduction is disallowed as incentive bonus received by the Development Officer forms part of salary in terms of the provision of section 17(1)(iv) as clarified in the Central Board of Direct Taxes Instruction No. 1768/1774 of October, 1987. No further deduction except standard deduction is admissible. Hence, Rs. 46,012-27,602 18,410 is disallow ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... . The circular of the Board bearing No. 689, dated August 24, 1994 (see [19941 209 ITR (St,) 75), supports the case of the appellant. The issue whether incentive bonus forms part of salary income or not is a debatable one. In these circumstances the provisions of section 143(1)(a) for making the said disallowance were not liable to be attracted. The Assessing Officer is, therefore, directed to del ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... " In our opinion, the Deputy Commissioner of Income-tax (Appeals) and the Tribunal have correctly interpreted the provision of section 143(1)(a) of the Act for holding that the Assessing Officer could not have invoked that provision for disallowing deductions claimed by the assessee in respect of incentive bonus. We are further of the view that the Assessing Officer could not have passed an or ..... X X X X Extracts X X X X X X X X Extracts X X X X
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