1994 (11) TMI 109

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X

..... ed for the opinion of this court by the Income-tax Appellate Tribunal under section 256(1) of the Income-tax Act, 1961: "Whether, on the facts and in the circumstances of the case and having regard to the provisions of section 16(i)(a) and (b) of the Income-tax Act, 1961, the Tribunal was justified in law in holding that the assessee was entitled to the deduction from salary derived by him from .....

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X

..... 0. The appeal of the Revenue against the order of the Commissioner of Income-tax (Appeals) was rejected by the Tribunal. Hence, this reference. Section 16(i) of the Income-tax Act, 1961, as it stood at the material time, so far as is relevant, reads: " 16. Deductions from salaries.-The income chargeable under the head 'Salaries' shall be computed after making the following deductions, namely:- .....

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X

..... ther the deduction was to be computed with reference to the aggregate amount of salary derived by the assessee or separately with respect to the amount of salary received from each employer. In other words, whether the maximum monetary ceiling would be applicable to the deduction under section 16(i) in respect of the aggregate salary or it will apply to deduction in respect of salary received from .....

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X

..... tion 16 shall be computed with reference to the aggregate amount of salary due to the assessee and such deduction shall in no case exceed the monetary ceiling specified therein. With the insertion of the above Explanation, the legal position (in regard to assessments for the assessment year 1975-76 and onwards) is absolutely clear and deduction under section 16(i) of the Act will be computed wit .....

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X

..... the aggregate salary due to him and such deduction shall in no case exceed the monetary ceiling specified therein. Having regard to the above, we hold that the assessee was entitled to a deduction of Rs. 3,500 only under section 16(i) of the Act. Accordingly, the question is answered in the negative, i.e., in favour of the Revenue, and against the assessee. Under the facts and circumstances o .....

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X