2000 (11) TMI 6 - SC - Income Tax

Whether, Tribunal has not erred in law in allowing 40 per cent. deduction from the incentive bonus granted by the employer when the incentive bonus is assessable under the head Salaries - Whether on the proper construction of section 16, further deduction at 40 % from the incentive bonus is allowable in addition to specific deduction allowable under that section - held that the questions are questions of law and that the High Court should have directed the Tribunal to refer the same to it

Summary

The Supreme Court allowed the appeal and set aside the order of the High Court, directing the Tribunal to refer questions regarding the deduction from incentive bonus under the head "Salaries" to the High Court for consideration.