9911796707
TMI Blog2000 (3) TMI 56X X X X Extracts X X X X X X X X Extracts X X X X ..... sessee over and above standard deduction available to salary income ?" The dispute relates to the question, (a) whether incentive bonus is salary, and (b) whether the assessee is entitled to claim any deduction over and above standard deduction available in respect of salary income. The factual position is as follows : The assessee is a Development Officer of the Life Insurance Corporation of India (in short, "the LIC"). Different amounts were claimed as expenses in respect of incentive bonus received. The Assessing Officer disallowed such claim on the ground that there was a clear employee-employer relationship between the assessee and the Life Insurance Corporation and, therefore, the only deduction that could be allowed was standard ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sessee that the stand taken before the Tribunal to the effect that the incentive bonus is not part of salary is not legally supportable. However, strong reliance has been placed on a decision of the Gujarat High Court in CIT v. Kiranbhai H. Shelat [1999] 235 ITR 635, to support the conclusion of the Tribunal. On the other hand, learned counsel for the Revenue has relied on a decision of the Karnataka High Court in CIT v. M. D. Patil [1998] 229 ITR 71 [FB] in support of its stand. He submitted that the Revenue's stand is also in line with the decisions rendered by different High Courts, i.e., CIT v. E. A. Rajendran [1999] 235 ITR 514 (Mad) ; B. M. Parmar v. CIT [1999] 235 ITR 679 (P H) ; CIT v. B. Chinnaiah [1995] 214 ITR 368 (AP) and CIT ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... basic pay, special pay, personal pay, dearness allowance and all other allowances which may be allowed to a Development Officer for any succeeding year if the terms of his appointment are fulfilled, and shall include any non-profit sharing or ex-gratia bonus payable in that year and an estimate of the expenses that may be allowed during that year in respect of travelling, residential telephone, insurance premium and taxes on motor vehicles, but shall not include any incentive bonus or additional conveyance allowance that may accrue to him.' Here also, incentive bonus and additional conveyance allowance are not included in the definition of the term 'gross yearly salary'. Thus, the Life Insurance Act enacted by Parliament has treated ince ..... X X X X Extracts X X X X X X X X Extracts X X X X
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