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Judgment
V.A. Mohta J.
The following question has been referred to this court at the instance of the Commissioner of Income Tax, Nagpur, u/s 256(1) of the Income Tax Act, 1961 ("the I. T. Act"):
"Whether, on the facts and in the circumstances of the case, the Appellate Tribunal was justified in holding that the assessee is entitled to standard deduction u/s 16(i) of the Income Tax Act in respect of each employment separately?"
The assessment year is 1981-82. The assessee derived salary from two employers. He claimed two deductions u/s 16(i) which have been granted by the Tribunal.
By the Taxation Laws (Amendment) Act, 1984, the following Explanation has been added to section 16(i) with effect with effect from April 1, 1975:
"Explanation. - For the removal of doubts, it is hereby declared that where, in the case of an assessee, salary is due from, or paid or allowed by, more than one employer, the deduction under this clause shall be computed with reference to the aggregate salary due, paid or allowed to the assessee and shall in no case exceed the amount specified under this clause;"
In view of the amendment of the Act, the question is answered in the negative and in favour of the Revenue. No order as to costs.