9911796707
TMI Blog1996 (5) TMI 4X X X X Extracts X X X X X X X X Extracts X X X X ..... low 50 per cent. deduction of incentive bonus received by the assessee from the Life Insurance Corporation of India relying on Board's Circular No. 14/9/65-IT (Al) dated September 22, 1965, which, in fact, is applicable to the Life Insurance Corporation agents and not for Development Officers ?" The assessee was working as Development Officer in the office of the Life Insurance Corporation of India at Sirohi. During the assessment year 1985-86, the assessee, apart from the salary and other allowance, received an amount of Rs. 50,132 from the Life Insurance Corporation as incentive bonus. He claimed a deduction of Rs. 20,000, i.e., 40 per cent. of the incentive bonus as the expenses incurred by him to procure the incentive bonus. The asses ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Tribunal, by its order dated March 26, 1990, referred the question of law mentioned in paragraph No. 1 above for the opinion of this court. The Tribunal allowed the deduction at 50 per cent. on the amount of incentive bonus relying upon the Board's circular. The material facts, on which the question mentioned in paragraph 1 above has to be decided are similar to those in D. B. Income-tax Reference No. 8 of 1992 (CIT v. Shiv Raj Bhatia [1997] 227 ITR 7 (Raj)). The controversy involved in the present case as well as in the case of Shiv Raj Bhatia [1997] 227 ITR 7 (Raj) is that the incentive bonus received by the Development Officer of the Life Insurance Corporation, whether can fall within the meaning of the words "salary", "perquisites" o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... against the assessee. For the same reasons, the above quoted question No. 1 is answered in favour of the Revenue and against the assessee in the same manner. Consequently, the reference is answered- in the negative, i.e., in favour of the Revenue and against the assessee, and it is held that the Income-tax Appellate Tribunal, Jaipur Bench, Jaipur, was not justified in directing to allow 50 per cent. deduction of the incentive bonus received by the assessee from the Life Insurance Corporation of India, relying on the Board's circular which is applicable only to the Life Insurance Corporation of India's agents and not to the Development Officers and the case of Development Officers is governed by the Board's Instruction No. 1774. &n ..... X X X X Extracts X X X X X X X X Extracts X X X X
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