TMI Blog1995 (2) TMI 53X X X X Extracts X X X X X X X X Extracts X X X X ..... ation certificate issued by the employer. The assessee claimed deduction of 40% of the incentive bonus as expenses. The Income-tax Officer, by an assessment order dated March 2, 1989, disallowed it, but on appeal preferred by the assessee it was allowed by the Commissioner of Income-tax (Appeals) who held that the incentive bonus received by the assessee was not as an employee but on account of a contractual arrangement, as such, the deduction as claimed by the assessee was allowable. The Revenue preferred an appeal before the Tribunal which was dismissed on July 15, 1991, so also an application under section 256(1) on January 20, 1993. Hence, the present application under section 256(2), seeking the statement of the case on the following q ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... [1957] 31 ITR 28 (SC). Now, adverting to the findings, the Tribunal in its order dated January 20, 1993, annexure-IV, has categorically held " with regard to the first question we are of the view that the finding of the Tribunal is essentially a finding of fact ". Noting the rival contentions, the Tribunal in its order dated July 15, 1991, annexure-III, has held as follows : " On behalf of the assessee copies of those decisions on which reliance was placed have been filed before us in order to support the plea of the assessee. The learned Departmental representative submitted that the Assessing Officer has given a clear finding that the assessee, being an employee of the Life Insurance Corporation of India is entitled only to standard ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tion that the Tribunal had held that incentive bonus/commission received by the assessee from the Life Insurance Corporation of India was not salary income but income from business or profession. The Tribunal also held that, on such incentive bonus/commission, the assessee was entitled to deduction at the rate of 40 per cent. of the incentive bonus/commission by way of estimated expenses for earning the income for which incentive bonus was paid. It is evident that the Department has not questioned the order of the Tribunal in so far as it concluded that the incentive bonus/commission received by the assessee from the Life Insurance Corporation was income from business or profession. What it has challenged is that 40 per cent. of the bonus/c ..... X X X X Extracts X X X X X X X X Extracts X X X X
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