Commissioner of Income Tax vs Pramod Kumar Jain

The Revenue has made this application u/s 256(2) of the Income Tax Act, 1961, requiring us to direct the Income Tax Appellate Tribunal to refer the following two questions for an opinion of this court :

" 1. Whether, on the facts and in the circumstances of the case, the Income Tax Appellate Tribunal was justified in law in sustaining the order of the first appellate authority that the assessee, a salaried employee of the LIC, was entitled to deduction at 50 per cent. on the incentive bonus received from his employer ?

Whether, on the facts and in the circumstances of the case, the Income Tax Appellate Tribunal was justified in law in holding that the assessee, a salaried employee of the LIC of India, was entitled to deduction at 40 per cent. u/s 10(14) of the Income Tax Act, 1961, on the incentive bonus received from his employer ?"

Inasmuch as only question No. 1 arises from the Tribunal''s order which is a question of law, in our opinion, we direct the Tribunal to draw up a statement of the case and refer the abovementioned question No. 1 to this court for its opinion.

The application is, therefore, partly allowed.