1987 (12) TMI 4

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..... pment officer employed by the Life Insurance Corporation of India received a sum of Rs. 9,536 from his employer by way of incentive bonus during the previous year relevant to the assessment year 1981-82. In his return filed under the Income-tax Act, he claimed a deduction of Rs. 4,768 by way of expenses in earning the said incentive bonus. The Income-tax Officer declined to give the deduction clai .....

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..... nsel for the Revenue that the incentive bonus paid to the petitioner as an employee is nothing but part of his salary. The definition of "salary" under section 17 of the Income-tax Act is wide enough to include the incentive bonus paid to an employee. The circumstance that, under section 36(1), sub-clause (ii), such a payment is given as a deduction to the employer also will not militate against t .....

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..... e has received from the employer. The definition of "wages" under the Payment of Wages Act, 1936, also indicates that bonus is included in the said definition. Having regard to the language of section 17 of the income-tax Act and the circumstance that the petitioner has received the said amount as incentive bonus while in employment, we do not consider that the contention of the petitioner has any .....

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